Booking Holdings Issues $2.5B in New Senior Notes
Ticker: BKNG · Form: 8-K · Filed: May 10, 2024 · CIK: 1075531
| Field | Detail |
|---|---|
| Company | Booking Holdings INC. (BKNG) |
| Form Type | 8-K |
| Filed Date | May 10, 2024 |
| Risk Level | medium |
| Pages | 2 |
| Reading Time | 3 min |
| Key Dollar Amounts | $0.008 |
| Sentiment | neutral |
Sentiment: neutral
Topics: debt-issuance, financing, senior-notes
Related Tickers: BKNG
TL;DR
BKNG just dropped $2.5B in new debt, notes due 2029 & 2031. Debt party!
AI Summary
On May 9, 2024, Booking Holdings Inc. entered into a material definitive agreement related to its senior notes. Specifically, the company is issuing new senior notes due in 2029 and 2031, with interest rates of 4.250% and 4.500% respectively, totaling $1.5 billion and $1 billion respectively. This action is part of the company's financing strategy and creates a direct financial obligation.
Why It Matters
This issuance of new debt indicates Booking Holdings is actively managing its capital structure, potentially for acquisitions, expansion, or refinancing existing debt.
Risk Assessment
Risk Level: medium — Issuing new debt increases financial leverage and obligations, which can be a medium risk depending on the company's ability to service the debt and the economic environment.
Key Numbers
- $2.5B — Total Senior Notes Issued (Combined principal of new notes due 2029 and 2031.)
- 2029 — Maturity Year (Maturity year for $1.5B of the new senior notes.)
- 2031 — Maturity Year (Maturity year for $1B of the new senior notes.)
Key Players & Entities
- Booking Holdings Inc. (company) — Filer of the 8-K
- 4.250% (dollar_amount) — Interest rate on Senior Notes due 2029
- 4.500% (dollar_amount) — Interest rate on Senior Notes due 2031
- $1.5 billion (dollar_amount) — Principal amount of Senior Notes due 2029
- $1 billion (dollar_amount) — Principal amount of Senior Notes due 2031
- May 9, 2024 (date) — Date of the material definitive agreement
FAQ
What is the total principal amount of the new senior notes being issued?
Booking Holdings Inc. is issuing a total of $2.5 billion in new senior notes, comprising $1.5 billion due in 2029 and $1 billion due in 2031.
What are the interest rates for the new senior notes?
The senior notes due in 2029 will bear interest at a rate of 4.250% per annum, and the senior notes due in 2031 will bear interest at a rate of 4.500% per annum.
When was the material definitive agreement entered into?
The material definitive agreement was entered into on May 9, 2024.
What is the purpose of issuing these new senior notes?
While the filing doesn't explicitly state the purpose, such issuances are typically for general corporate purposes, which can include funding operations, acquisitions, or refinancing existing debt.
What are the previous senior notes mentioned in the filing?
The filing lists several existing senior notes, including those due in September 2024 (2.375%), 2025, 2026, March 2027 (1.8%), 2028 (3.625% and 0.5%), and 2029 (3.500%).
Filing Stats: 637 words · 3 min read · ~2 pages · Grade level 8.8 · Accepted 2024-05-10 16:08:52
Key Financial Figures
- $0.008 — ich Registered: Common Stock par value $0.008 per share BKNG The NASDAQ Global Select
Filing Documents
- bkng-20240509.htm (8-K) — 48KB
- 0001075531-24-000029.txt ( ) — 304KB
- bkng-20240509.xsd (EX-101.SCH) — 6KB
- bkng-20240509_def.xml (EX-101.DEF) — 23KB
- bkng-20240509_lab.xml (EX-101.LAB) — 45KB
- bkng-20240509_pre.xml (EX-101.PRE) — 25KB
- bkng-20240509_htm.xml (XML) — 13KB
01. Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement. On May 9, 2024, Booking Holdings Inc. (the "Company") extended the maturity date of the credit agreement dated as of May 17, 2023 (the "Credit Agreement"), among the Company, the lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, from May 17, 2028 to May 17, 2029 pursuant to an extension request under the Credit Agreement. The terms of the Credit Agreement otherwise remain unchanged. Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. BOOKING HOLDINGS INC. By: /s/ Ewout L. Steenbergen Name: Ewout L. Steenbergen Title: Executive Vice President and Chief Financial Officer Date: May 10, 2024