Trip.com Group said that it proposes to offer up to USD 500 million of exchangeable senior notes due 2027 in offshore transactions outside the United States to non-U.S. persons.
Upon exchange, the company will pay or deliver to such exchanging holders, cash, ADS shares of Huazhu Group, or a combination of cash and Huazhu ADSs.
As of March 31, 2020, Trip.com Group held a 7.4% stake in Huazhu.
The exchange rate and other terms of the Notes have not been finalized and will be determined at the time of pricing of the Notes Offering. The Company plans to use the net proceeds from the notes offering for general corporate purposes, including repayment of any existing financial indebtedness.