EXPE
Expedia Group, INC
NASDAQ
8-K: Expedia Group Closes $1 Billion Senior Notes Offering Due 2035
Sentiment:
Debt Offering Announcement
21 February 2025 4:40 PM
Expedia Group successfully closed a $1 billion public offering of 5.400% senior notes due in 2035, planning to use the proceeds for various corporate purposes.
Capital raise
Expedia Group completed a registered public offering of $1 billion aggregate principal amount of unsecured 5.400% Senior Notes due 2035.
The net proceeds from the Senior Notes Offering were approximately $985 million, after deducting discounts and estimated offering expenses payable by Expedia Group.
Expedia Group intends to use the net proceeds from the Senior Notes Offering for general corporate purposes, including, without limitation, (i) repayment, prepayment, redemption or repurchase of outstanding debt, (ii) dividends and stock repurchases and (iii) funding for working capital, capital expenditures, and acquisitions.
Summary
- Expedia Group has completed a public offering of $1 billion in senior notes due 2035 with a 5.400% coupon.
- The notes were priced at 99.316% of the principal amount.
- After deducting discounts and expenses, the net proceeds totaled approximately $985 million.
- Expedia intends to use the net proceeds for general corporate purposes, including debt repayment, dividends, stock repurchases, working capital, capital expenditures, and acquisitions.
- The notes are guaranteed by certain Expedia Group subsidiaries.
Sentiment
Score: 7
Explanation: The sentiment is neutral to positive. The successful closing of the notes offering indicates financial health and access to capital, but the document also contains standard risk disclosures.
Positives
- Expedia Group successfully raised $985 million through the notes offering.
- The company has flexibility in using the proceeds for various corporate purposes.
Risks
- The document references risk factors detailed in Expedia's 2024 Annual Report on Form 10-K, advising readers not to place undue reliance on forward-looking statements.
Future Outlook
Expedia Group intends to use the net proceeds from the Senior Notes Offering for general corporate purposes, including, without limitation, (i) repayment, prepayment, redemption or repurchase of outstanding debt, (ii) dividends and stock repurchases and (iii) funding for working capital, capital expenditures, and acquisitions.
Industry Context
This announcement reflects a common practice in the travel industry where companies utilize debt financing to manage capital structure and fund strategic initiatives.
Comparison to Industry Standards
- Comparable companies such as Booking Holdings and Airbnb also utilize debt financing as part of their capital management strategies.
- The interest rate and terms of the notes are within the typical range for senior unsecured debt issued by companies with similar credit ratings.
Stakeholder Impact
- Shareholders may benefit from the company's ability to manage its debt and fund growth initiatives.
- Creditors are provided with senior unsecured notes backed by the company's assets and guarantees from subsidiaries.
Key Dates
- February 19, 2025: Date of the Underwriting Agreement.
- February 19, 2025: Date of the Registration Statement.
- February 21, 2025: Closing date of the sale of the Notes.
- August 15, 2025: First interest payment date.
- February 15, 2035: Maturity date of the Notes.
- November 15, 2034: Par Call Date.
Keywords
EXPE
Expedia Group, INC
NASDAQ
Sector: TBD
Filings with Classifications
Worse than expected
8 May 2025 9:38 PM
Quarterly Report
- The company reported a net loss attributable to Expedia Group, Inc. of $200 million, compared to a net loss of $135 million in the same period last year.
- Weaker than expected travel demand in the U.S. was experienced during the first quarter of 2025.
Better than expected
8 May 2025 4:01 PM
Earnings Release
- The bottom line meaningfully beat guidance.
Capital raise
21 February 2025 4:40 PM
Debt Offering Announcement
- Expedia Group completed a registered public offering of $1 billion aggregate principal amount of unsecured 5.400% Senior Notes due 2035.
- The net proceeds from the Senior Notes Offering were approximately $985 million, after deducting discounts and estimated offering expenses payable by Expedia Group.
- Expedia Group intends to use the net proceeds from the Senior Notes Offering for general corporate purposes, including, without limitation, (i) repayment, prepayment, redemption or repurchase of outstanding debt, (ii) dividends and stock repurchases and (iii) funding for working capital, capital expenditures, and acquisitions.
Better than expected
6 February 2025 4:02 PM
Earnings Release
- The company's Q4 results exceeded expectations due to strong execution and better-than-expected travel demand.
- B2C and B2B gross bookings growth accelerated 5 points to 9% and 24% respectively in Q4.
- Net income grew 124% and adjusted net income grew 30% year-over-year in Q4.
Better than expected
7 November 2024 5:33 PM
Quarterly Report
- The company's net income attributable to Expedia Group, Inc. increased significantly year-over-year.
- Gross bookings and adjusted EBITDA also showed positive growth, indicating better than expected performance.
Better than expected
7 November 2024 4:03 PM
Quarterly Report
- The company's results exceeded expectations for gross bookings and earnings.
- The company saw accelerated bookings growth in its consumer business for the second consecutive quarter.
- The company's advertising and B2B businesses continue to deliver strong double-digit growth.
Worse than expected
8 August 2024 5:40 PM
Quarterly Report
- Net income decreased in Q2 2024 compared to Q2 2023, indicating worse than expected profitability.
- The company incurred significant restructuring charges and legal reserves, negatively impacting the bottom line.
Worse than expected
8 August 2024 4:02 PM
Quarterly Report
- The company is adjusting its expectations for the rest of the year due to a softening in travel demand in July, indicating that future results may be worse than previously anticipated.
Worse than expected
2 May 2024 5:41 PM
Quarterly Report
- The company reported a net loss of $136 million, which is worse than expected given the revenue growth.
- The restructuring charges of $48 million negatively impacted the bottom line.
- The decline in ADRs is a concern and could impact future revenue growth.
Worse than expected
2 May 2024 4:02 PM
Quarterly Report
- The company lowered its full-year guidance due to the slower than expected recovery of Vrbo.
- Gross bookings were less robust than expected, despite revenue and earnings beating guidance.
Worse than expected
26 February 2024 5:00 PM
Current Report
- The company is incurring significant costs due to restructuring and is reducing its workforce, which is generally viewed negatively by investors.
Worse than expected
8 February 2024 5:40 PM
Annual Results
- The company recorded a goodwill impairment charge of $297 million related to the trivago segment.
- Intangible impairment charges of $129 million related to indefinite-lived trade names were recorded.
- Operating income decreased by 5% year-over-year.
Better than expected
8 February 2024 4:02 PM
Earnings Release and CEO Transition Announcement
- The company reported record full-year revenue and net income, exceeding previous results.
- Adjusted EBITDA and EPS also showed significant year-over-year growth.
- The company's B2B segment experienced substantial growth, indicating strong performance in that area.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.