PIPEs Gain Popularity Again, Apollo and Silver Lake to Buy Stakes in Expedia
Posted on 04/24/2020
A private investment in public equity are often called a PIPE deal. These PIPE deals are the selling of publicly traded common shares or some form of preferred stock or convertible security to private investors.
On April 23, 2020, Expedia Group, Inc. entered into an investment agreements with AP Fort Holdings, L.P., an affiliate of Apollo Global Management, Inc. and with SLP Fort Aggregator II, L.P. and SLP V Fort Holdings II, L.P., affiliates of Silver Lake Group, L.L.C.
Expedia agreed to issue and sell 600,000 newly created Series A Preferred Stock for an aggregate purchase price of $588 million to Apollo Management. Expedia agreed to issue and sell 600,000 newly created Series A Preferred Stock for an aggregate purchase price of $588 million to Apollo Management. These deals hinges on Expedia consummating the offering of up to US$ 2 billion aggregate principal amount of Senior Notes due 2025 in a private placement. Expedia expects that the purchase of the Series A Preferred Stock and warrants pursuant to the investment agreements will occur on or about May 5, 2020.
Separately, Expedia named Vice Chairman Peter Kern as its CEO and acting CFO Eric Hart as permanent CFO.
Keywords: Silver Lake Partners.
