Liberty TripAdvisor Holdings Enters into Variable Postpaid Forward Transaction
ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Liberty TripAdvisor Holdings, Inc. (“Liberty TripAdvisor”)(Nasdaq: LTRPA, LTRPB) announced that it agreed to the terms of a variable postpaid forward (“VPF”) transaction on 7.0 million TripAdvisor, Inc. (Nasdaq: TRIP) common shares. The VPF establishes a collar on the value of the underlying TRIP common shares in four years, between a cap set at $98.96 per share and a floor set at $38.90 per share. Liberty TripAdvisor may draw up to $259 million of proceeds against the VPF. If the VPF is cash settled at maturity, Liberty TripAdvisor would repay this borrowing at an accreted value based on a 1.3% annual rate. Liberty TripAdvisor intends to use the proceeds to repay $200 million in principal and $28 million of PIK interest under its existing $400 million margin loan borrowings, with the remainder to be used for general corporate purposes.
Pro-forma for the transaction, Liberty TripAdvisor (excluding amounts consolidated from TripAdvisor, Inc.) will have up to $259 million borrowed against the VPF and $200 million drawn on its margin loan agreements, with no current ability to re-borrow under the margin loan agreements following the repayment of principal discussed above.
About Liberty TripAdvisor Holdings, Inc.
Liberty TripAdvisor Holdings, Inc.’s (Nasdaq: LTRPA, LTRPB) businesses consist of its subsidiaries TripAdvisor and BuySeasons. TripAdvisor is the world’s largest online travel community, aggregating reviews and opinions from its community of travelers about destinations, accommodations, restaurants and activities throughout the world. BuySeasons is a leading online retailer of costumes and party supplies.
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Liberty TripAdvisor Holdings, Inc.
Courtnee Chun, 720-875-5420
Source: Liberty TripAdvisor Holdings, Inc.
Released June 7, 2016