Liberty TripAdvisor to buy preferreds from Certares for $344 million

By Rebecca Melvin

New York, March 23 – Liberty TripAdvisor Holdings Inc. plans to repurchase about 39% of its 8% series A cumulative redeemable preferred stock from an affiliate of Certares Management LLC for about $344 million, according to a news release.

The company is using proceeds from a $300 million private offer of 0.5% exchangeable senior debentures due 2051 to help fund the buyback.

Specifically, the repurchase will be funded using a combination of $252 million of cash from proceeds of the debentures offering and $92 million of common stock, equating to 1,713,859 shares, owned by Liberty TripAdvisor.

If the initial purchases of the debentures exercise their option to purchase $30 million of additional debentures, then the company will repurchase about 42% of the preferred stock for $373 million.

The purchase price was based on the $53.68 closing price of the company’s common stock on March 22.

The Certares transaction is subject to some conditions and is expected to be completed on March 29.

Based in Englewood, Colo., the holding company focuses on its online travel service, which compiles reviews from travelers about destinations, accommodations, restaurants and activities.

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