Orbitz Worldwide closes on $450 million term loans

By Paul A. Harris

Portland, Ore., March 26 - Orbitz Worldwide, Inc. announced in a Tuesday press release that it has closed on $450 million of senior secured term loans.

As reported, Orbitz's credit facility was comprised of a $300 million six-year term loan C and the $150 million 41/2-year term loan B.

Pricing on the term loan C is Libor plus 675 bps with a 1.25% Libor floor, and it was sold at a discount of 99.There is 101 repricing protection for one year and amortization of 1% per annum.

The term loan B, which amortizes at a rate of 10% per annum, is priced at Libor plus 600 bps with a 1.25% Libor floor and was sold at an original issue discount of 99.

During syndication, the term loan C was upsized from $250 million and the repricing protection on both term loans was changed from 102 in year one and 101 in year two.

Orbitz's credit facility (B+), for which Credit Suisse Securities (USA) LLC is the lead, also provides for a $50 million revolver.

Proceeds will be used to refinance existing debt and for general corporate purposes, and the additional amount raised through the term loan C upsizing will be put into a restricted account to collateralize letters of credit.

Orbitz is a Chicago-based online travel agency.

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