Orbitz details $800 million credit facility related to IPO

By Sara Rosenberg

New York, June 12 - Orbitz Worldwide Inc. came out with details on its proposed $800 million senior secured credit facility that will be completed in connection with its initial public offering of common stock, according to an S-1/A filed with the Securities and Exchange Commission Tuesday.

The facility consists of a $600 million seven-year term loan, a $125 million six-year synthetic letter-of-credit facility and a $75 million six-year revolver.

Proceeds from the credit facility, along with IPO proceeds, will be used to fund a dividend to parent company Travelport Ltd.

Travelport plans to use the proceeds from the payment to repay a portion of its senior credit facility debt.

The credit facility will be done with a syndicate of financial institutions, including affiliates of certain of the underwriters of the IPO, the filing said.

The IPO underwriters include Morgan Stanley, Goldman Sachs, Lehman Brothers, JPMorgan, Credit Suisse and UBS.

The Chicago-based online travel company's IPO is expected to take place in the third quarter.

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