Expedia Gears Up for Corporate Bond Market

Online travel services company Expedia Inc. is set to tap the corporate bond market for the first time this week.

Last week, the company had announced that it plans to privately offer up to $800 million of senior unsecured notes guaranteed by certain of its subsidiaries.

Expedia plans to use the net proceeds of the offering for general corporate purposes, which may include repurchase of common stock, repayment of debt, acquisitions, investments, additions to working capital, capital expenditures and advances to or investments in its subsidiaries.

As per the information available, the company will sell the 10-year senior unsecured notes through joint lead managers JP Morgan Securities Inc. and Lehman Brothers Inc. in a private placement.

Expedia is authorized to repurchase up to $600 million of shares. In the six months ended June 30, the company had repurchased $127 million of shares, as per the information available.