- Trip.com Group (TCOM, Financial) announces repurchase right for $500 million of its 1.50% Exchangeable Senior Notes due 2027.
- Noteholders can require repurchase for cash at 100% of principal, plus accrued interest, on July 1, 2025.
- The repurchase right is exercisable from May 28, 2025, to June 27, 2025.
Trip.com Group Limited (TCOM), a prominent global travel service provider, has issued a repurchase right notification for holders of its 1.50% Exchangeable Senior Notes due 2027. The company has committed to repurchase these notes for cash on July 1, 2025, at 100% of the principal amount, alongside any accrued and unpaid interest up to June 30, 2025.
The total amount of outstanding notes stands at $500 million. If all noteholders exercise this repurchase right, it would require the same amount in cash from Trip.com (TCOM, Financial). The repurchase right offers a window for exercise from May 28, 2025, to June 27, 2025, allowing noteholders to make informed decisions about participation.
Noteholders must adhere to specific transmittal procedures coordinated through the Depository Trust Company and The Bank of New York Mellon to exercise their repurchase rights effectively. This initiative by Trip.com (TCOM, Financial) is in line with the terms outlined in the indenture agreements established since 2020.
By potentially reducing its long-term debt obligations, Trip.com (TCOM, Financial) could improve its debt-to-equity ratio. However, fulfilling the repurchase could also substantially decrease its cash reserves, impacting available liquidity for operational and growth endeavors.
