S&P: Priceline.com convertibles BBB

Standard & Poor's said it assigned a BBB rating to Priceline.com Inc.'s proposed $1 billion convertible debt offering due 2020.

The proceeds will be used for general corporate purposes, including share repurchases, S&P said.

The agency said it expects that Priceline.com will likely use proceeds to repurchase shares, offsetting the dilutive effect of its Kayak Software Inc. acquisition.

On May 21, Priceline.com closed its acquisition of Kayak for $522 million in cash and about $1.29 billion in stock, S&P said.

The company is expected to maintain its prudent approach regarding share repurchases, dividends and acquisitions, the agency said.

The company's business risk profile is considered satisfactory, reflecting its market-leading position in European hotel reservation services and its growing presence in Asia and other markets, S&P said.

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