Tripadvisor will use a $300 million issue of convertible notes to fund the costs of "capped call transactions" and other strategic activities.
The company says it intends to issue the notes via a private offering, with a due date of 2026.
Up to $45 million will also be made available for purchase as an add-on to the initial buyer.
The strategic activities may include repayment of existing debts, Tripadvisor says in a statement.
The company finished 2020 with its revenue down 61% to $604 million compared to $1.6 billion in 2019, but president and CEO Steve Kaufer says the company is entering 2021 “with optimism,” largely driven by the potential to develop a recurring revenue stream through its new Tripadvisor Plus subscription service.
Tripadvisor revenue was $116 million in the fourth quarter of 2020, down 65% compared to the same period a year earlier. For the year, losses were split roughly evenly between the company’s three business units – defined as hotels, media and platform; experiences and dining; and other.
Adjusted EBITDA loss was $33 million in the fourth quarter and $51 million for the full year, compared to 2019 figures of $92 million in the fourth quarter and $438 million for the full year.
Two weeks ago, Booking Holdings announced plans to benefit from the sale of $950 million in notes due to expire n 2025 and $750 million in 2028.