Orbitz readies launch of $450 million credit facility for Thursday

By Sara Rosenberg

New York, March 6 - Orbitz Worldwide Inc. will hold a bank meeting at 10 a.m. ET in New York on Thursday to launch a $450 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The facility consists of a $50 million revolver, a $150 million 41/2-year term loan B and a $250 million six-year term loan C, the source said.

Price talk on the term loan B is Libor plus 600 basis points with a 1.25% Libor floor and an original issue discount of 99, and the term loan C is talked at Libor plus 675 bps with a 1.25% floor and a discount of 99, the source continued.

Both term loans have call protection of 102 in year one and 101 in year two against repricings.

Amortization on the term loan B is 10% per annum, while the term loan C amortizes at a rate of 1% per annum.

Covenants include first-lien leverage and interest coverage ratios.

Proceeds will be used to refinance existing debt and for general corporate purposes, the source added.

Orbitz is a Chicago-based online travel agency.

© 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.