Liberty TripAdvisor Seeks $300M Via Debt For Preferred Stock Buyback


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Online travel community Liberty TripAdvisor Holdings Inc (NASDAQ: LTRPAannounced plans to offer $300 million exchangeable senior debentures due 2051 convertible for subsidiary Tripadvisor, Inc (NASDAQ: TRIP) shares under a private offering.

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  • Liberty TripAdvisor would utilize the offering proceeds to fund the cash portion of the purchase price for the Liberty TripAdvisor 8% redeemable preferred share buyback in a pending private transaction with an affiliate of Certares Management LLC and other general corporate purposes.
  • Liberty TripAdvisor expected to buyback 40% of the preferred share held by Certares, based on the closing price of TRIP shares on March 19, 2021, under a buyback agreement with Certares.
  •  The preferred shares would be repurchased in exchange for a combination of $92 million value of Tripadvisor shares, net proceeds from a proposed new issuance by Liberty TripAdvisor of exchangeable senior debentures with Tripadvisor shares underlying shares minus $35 million to fund Liberty TripAdvisor's anticipated working capital needs.
  •  The $35 million would be sufficient to fund interest payments expected under the proposed exchangeable debentures through March 27, 2025, and certain transaction expenses.
  • LTRPA and TRIP share prices gained 493% and 282% in last year, respectively.
  • Price action: LTRPA shares closed at $7.47 on Friday. TRIP shares are trading lower by 1.65% at $59.99 in the premarket session on the last check Monday.

27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: NewsOfferingsBuybacksSmall CapTechMediapreferred stocks