Tripadvisor Announces $500 Million Senior Notes Offering

Rhea-AI Summary

On July 7, 2020, Tripadvisor (Nasdaq: TRIP) announced plans to offer $500 million in new senior notes due 2025. These senior unsecured obligations will be guaranteed by the company's domestic subsidiaries. The net proceeds will be utilized for general corporate purposes. This offering is intended for qualified institutional buyers under Rule 144A and outside the U.S. under Regulation S, and it does not constitute an offer or solicitation. Tripadvisor serves approximately 463 million travelers each month and features 860 million reviews across various travel sectors.

Positive

• Tripadvisor offers $500 million in senior notes to strengthen corporate financing.
• The offering will aid in general corporate purposes, enhancing financial flexibility.

Negative

• The success of the offering is uncertain due to market conditions, including the impact of COVID-19.
• The notes have not been registered, limiting their sale in the U.S. without exemptions.

NEEDHAM, Mass., July 7, 2020 /PRNewswire/ -- Tripadvisor, Inc. (Nasdaq: TRIP) ("Tripadvisor") today announced that it intends to offer $500 million aggregate principal amount of new senior notes due 2025 (the "Notes") in a private offering.

The Notes will be senior unsecured obligations of Tripadvisor and will be guaranteed by each of its domestic subsidiaries that guarantees Tripadvisor's credit facility. Tripadvisor intends to use the net proceeds from the offering for general corporate purposes.

The Notes and related guarantees are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), or outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes and related guarantees. Any offers of the Notes and related guarantees will be made only by means of a private offering memorandum. The Notes and related guarantees have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements.

About Tripadvisor

Tripadvisor, the world's largest travel platform, helps 463 million travelers each month make every trip their best trip. Travelers across the globe use the Tripadvisor site and app to browse 860 million reviews and opinions of 8.7 million accommodations, restaurants, experiences, airlines and cruises. Whether planning or on a trip, travelers turn to Tripadvisor to compare low prices on hotels, flights and cruises, book popular tours and attractions, as well as reserve tables at great restaurants. Tripadvisor, the ultimate travel companion, is available in 49 markets and 28 languages.

Forward-Looking Statements

Statements regarding the offering and the expected use of proceeds therefrom are "forward-looking statements" and are subject to known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed in such forward-looking statements. These risks and uncertainties include, but are not limited to, the ability to complete the offering on favorable terms, if at all, and general market conditions (including the COVID-19 pandemic and related economic impact) which might affect the offering. Additional information concerning these and other important risks and uncertainties can be found in the company's filings with the SEC, including under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Report on Form 10-Q for the period ended March 31, 2020. The company undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances.

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SOURCE Tripadvisor

FAQ

What is Tripadvisor's recent financial announcement?

Tripadvisor announced a $500 million senior notes offering due 2025.

What will Tripadvisor do with the proceeds from the notes offering?

The proceeds will be used for general corporate purposes.

Who can purchase the new senior notes from Tripadvisor?

The notes are offered only to qualified institutional buyers and non-U.S. persons.

What are the risks associated with Tripadvisor's notes offering?

Risks include uncertain market conditions and reliance on regulatory exemptions.

When does Tripadvisor plan to issue the senior notes?

Tripadvisor announced the offering on July 7, 2020.