Liberty TripAdvisor secures new $500M Term Loan B Facility

Published 09/07/2024, 06:48 am
LTRPA
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ENGLEWOOD, CO - Liberty TripAdvisor Holdings (OTC:LTRPA), Inc. has entered into a significant financial agreement, according to a recent SEC filing. On Monday, the company, through its subsidiaries Tripadvisor , Inc., Tripadvisor Holdings, LLC, and Tripadvisor LLC, amended its existing credit agreement to establish a new term loan facility.

The new $500 million Term Loan B Facility, arranged with JPMorgan Chase (NYSE:JPM) Bank, N.A. as the administrative agent, will mature on July 8, 2031, and carries an interest rate based on SOFR plus 2.75%. This strategic move is aimed at refinancing existing debt, specifically to redeem Tripadvisor’s 7.000% Senior Notes due in 2025.

The amended credit agreement retains several of the original terms but introduces changes including adjustments to the definition of "Consolidated EBITDA" and an increase in the available amount that may be used for restricted payments and investments. Additionally, it introduces new provisions for capital leases, purchase money debt, and additional indebtedness, enhancing financial flexibility for the company.

This agreement imposes no financial covenant on the Term Loan B Facility but includes customary events of default and modifies the cross-default provision to incorporate a cross-acceleration event with the revolving facility under the same credit agreement. In the event of a default, lenders may demand immediate payment of outstanding obligations and exercise rights against the collateral, which includes nearly all assets of Tripadvisor and the Subsidiary Loan Parties.

The obligations under the amended agreement are secured by a broad range of assets, encompassing personal, tangible, or intangible assets of Tripadvisor and the subsidiary loan parties. This information is based on a press release statement.

Liberty TripAdvisor (NASDAQ:TRIP) Holdings, Inc., through its subsidiaries, has established a robust relationship with JPMorgan Chase Bank, which has provided various banking and financial advisory services in the ordinary course of business, for which it receives customary fees and commissions.

In other recent news, Liberty TripAdvisor Holdings, Inc. held its annual stockholder meeting where several key decisions were made. Gregory B. Maffei and Michael J. Malone were re-elected as Class III directors, securing their positions on the board until the 2027 annual meeting or until their earlier resignation or removal.

The appointment of KPMG LLP as the company's independent auditors for the fiscal year ending December 31, 2024, was ratified by an overwhelming majority. Furthermore, the "say-on-pay" proposal, an advisory vote on the compensation of the company’s named executive officers, also gained approval.

InvestingPro Insights

In light of Liberty TripAdvisor Holdings, Inc.'s recent financial restructuring, it's pertinent to consider the company's current market performance and financial health. With a market capitalization of $38.43 million and a negative P/E ratio of -1.23, the company's stock trades with significant price volatility. This is underscored by a sharp 68.75% decline in the three-month price total return and a year-to-date price total return of -41.18%. Additionally, the company has not been profitable over the last twelve months, which is reflected in a basic and diluted EPS of -4.2 USD.

Despite these challenges, the company has demonstrated a solid revenue growth of 13.18% over the last twelve months as of Q1 2024, with a gross profit margin of 76.6%. These figures suggest that while the stock price has struggled, the underlying business has areas of strength. Investors should note that Liberty TripAdvisor Holdings does not pay a dividend, aligning with the profile of a company that may prioritize reinvestment and debt management over shareholder payouts. For those considering an investment, it's essential to weigh the high volatility and lack of profitability against the potential for revenue growth.

For further analysis and additional InvestingPro Tips related to Liberty TripAdvisor Holdings, Inc., including a moderate level of debt and the impact of recent price performance, investors can visit Investing.com's dedicated page. There are 9 more tips available that could guide investment decisions. To access these insights, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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