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Expedia has unveiled plans to raise US$3.2 billion in new capital as international travel stalls in the midst of the coronavirus pandemic.
The funds are comprised of an equity investment of US$1.2 billion by Apollo and Silver Lake, two private equity firms, and $2 billion in new debt financing.
The equity will be non-voting and non-convertible preferred stock.
The company said it was also ceasing dividends until the business “rebounds”.
Barry Diller, Expedia chairman, stated: “We have one mandate – to conserve cash, survive, and use this time to reconstruct a stronger enterprise to serve the future of travel.
“We are unable to make any predictions as to when travel will rebound but we emphatically believe that it will.”
At the same time, Peter Kern has been appointed chief executive of the company.
He has been a member of the board since 2005 and became vice chairman of the travel tech giant in 2018.
Diller added: “When we changed management in December, Kern joined with me in operational supervision of the company.
“In these last five months, he has shown outstanding leadership in all aspects of the business, first in a wide reorganisation and then dealing with the impact of the coronavirus crisis on our business.
“He now knows all aspects of the business, and we are truly lucky that he is now available to devote his full time to Expedia.”
Kern has spent decades in leadership roles in public and private settings, most recently as the chief executive of Tribune Media.
Source: breakingtravelnews.com