Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers O > Headlines for Orbitz Worldwide Inc. > News item |
Orbitz Worldwide to swap $49.68 million senior term debt for shares
By Devika Patel and Sara Rosenberg
New York, Nov. 5 - Orbitz Worldwide Inc. is exchanging $49.68 million of its senior term loan debt held by PAR Investment Partners for 8.16 million shares of its common stock, priced at $5.54 per share, according to a news release.
The debt received from PAR will be retired in accordance with the amendment to Orbitz's senior credit agreement that was completed in June.
In a separate transaction, Travelport has entered into a definitive agreement to make a $50 million investment in Orbitz's common stock.
The funds received from Travelport are expected to be used for general corporate purposes, which could include additional investments and debt repayments.
These investments are expected to close in January 2010.
"These transactions will enable us to reduce our debt by $50 million, increase our cash by $50 million and give us additional operating flexibility as we pursue the growth of our global hotel distribution business," said Barney Harford, president and chief executive officer, in a news release.
Orbitz is a Chicago-based online travel company.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.