Priceline.com Inc., the largest U.S. online travel agent by market value, increased its stock-repurchase program by $1 billion in tandem with a private debt offering.
The company plans to use the net proceeds from the offering to buy back as much as $450 million of its outstanding common stock in privately negotiated transactions, Norwalk, Connecticut-based Priceline said in a statement yesterday.
Subject to market conditions, Priceline said it will sell as much as $1 billion in convertible senior notes due in 2020. The initial purchaser will have the option of buying as much as $150 million more in debt to cover an over-allotment.
Shares of Priceline increased as much as 1.5 percent to $803.90 in extended trading. Earlier, they declined 1.5 percent to $792.27 at yesterday’s close in New York, leaving them up 28 percent this year.