Business Context and Reporting Period
Company: Expedia, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: August 18, 2010
Event: Entry into a Material Definitive Agreement regarding an amendment to the company's existing revolving credit facility.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or total debt levels. It specifically addresses the terms of the Revolving Credit Facility:
- Facility Maturity: Extended to August 18, 2014.
- Interest Rate Spreads: Decreased by 50 basis points on drawn amounts.
- Commitment Fees: Decreased by 5 to 12.5 basis points on undrawn amounts (varies by senior unsecured debt ratings).
- Administrative Agent: JPMorgan Chase Bank, N.A.
Material Changes Versus Prior Period
The filing details a modification to the credit agreement originally dated February 8, 2010. The material changes include:
- Extension of the facility's maturity date by four years.
- Reduction in borrowing costs (interest spreads) and fees for undrawn commitments.
- Certain modifications to covenants and other terms of the facility.
Guidance, Outlook, and Risks
Management Commentary: The filing notes that JPMorgan Chase Bank, N.A., and J.P. Morgan Europe Limited have performed and may continue to perform financial advisory, investment banking, and commercial banking services for the company and its affiliates in the ordinary course of business, for which they receive customary fees and expense reimbursements.
Risks and Contingencies: The filing states that the description of the Amendment is not complete and is qualified in its entirety by reference to the actual Amendment attached as Exhibit 10.1. No specific new risks or contingencies are detailed in the text provided.
Important Facts for Investor Verification
- Verify the specific covenant modifications referenced in the Amendment (Exhibit 10.1) to understand potential restrictions on future operations or capital structure.
- Confirm the company's current senior unsecured debt rating to determine the exact applicable interest rate spread and commitment fee reductions.
- Review the full text of Exhibit 10.1 for any prepayment penalties or conditions associated with the extended maturity date.