SEC Filing Summary: Expedia, Inc. (Form 8-K)
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Expedia, Inc. on December 27, 2006, reporting an event that occurred on December 21, 2006. The filing concerns a material amendment to the company's existing credit facilities.
Key Financial Metrics
The filing does not provide specific values for revenue, profit, cash flow, margins, or total debt levels. The document focuses exclusively on a covenant modification regarding the company's consolidated net worth requirement.
Material Changes
- Credit Agreement Amendment: On December 21, 2006, Expedia, Inc. entered into a Second Amendment to its Credit Agreement dated July 8, 2005.
- Covenant Modification: The amendment, effective December 18, 2006, provides for a reduced consolidated net worth requirement.
- Parties Involved: The agreement involves Expedia, Inc. and its subsidiaries (Travelscape, Hotels.com, Hotwire) as borrowers, with JPMorgan Chase Bank, N.A. serving as Administrative Agent.
Guidance, Outlook, and Risks
The filing contains no management commentary, forward-looking guidance, or discussion of risks beyond the specific amendment to the credit agreement. The summary of the amendment is qualified in its entirety by reference to the full text of the Second Amendment filed as Exhibit 10.1.
Investor Verification Checklist
- Review Exhibit 10.1 (Second Amendment) to determine the specific numerical value of the reduced consolidated net worth requirement.
- Verify if the reduction in the net worth covenant was triggered by a specific financial performance shortfall or a strategic restructuring.
- Check subsequent filings to confirm compliance with the amended covenant terms.
- Confirm the total outstanding debt balance under the July 8, 2005 Credit Agreement to assess the impact of the covenant change on liquidity.