Orbitz Worldwide cuts term B pricing, firms term C spread at tight end

By Sara Rosenberg

New York, May 22 - Orbitz Worldwide Inc. reduced pricing on its $100 million term loan B due September 2017 to Libor plus 350 basis points from talk of Libor plus 375 bps to 400 bps and firmed pricing on its $350 million term loan C due March 2019 at Libor plus 475 bps, the tight end of the Libor plus 475 bps to 500 bps talk, according to a market source.

Also, a step-down was added to the term loan B to Libor plus 325 bps, and one was added to the term loan C to Libor plus 450 bps, in both cases effective when senior secured leverage is 2.5 times. Current senior secured leverage is around 3 times.

Unchanged were the 1% Libor floor, par offer price and 101 repricing protection for six months on both term loans.

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

Credit Suisse Securities (USA) LLC is the lead bank on the $450 million deal.

Proceeds will be used to reprice/refinance an existing $150 million term loan B due September 2017 that is priced at Libor plus 600 bps with a 1.25% Libor floor and a $300 million term loan C due March 2019 that is priced at Libor plus 675 bps with a 1.25% Libor floor.

Recommitments were due at 2 p.m. ET on Wednesday, 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.