Travelport Sets Stock Price Range for IPO
by Michele McDonald /Travelport Worldwide Ltd. set an estimated price range of $14 to $16 per common share for its initial public offering, valuing the company at about $1.9 billion.
In an amendment to its S1 registration statement filed in June, the company told the Securities and Exchange Commission (SEC) it plans to offer 30 million shares “as soon as reasonably practicable after this registration statement becomes effective.”
At the top of the price range, the IPO would raise $480 million.
Travelport also granted the underwriters the right to purchase an additional 4.5 million shares.
The company has applied to list its common shares on the New York Stock Exchange under the symbol TVPT.
In a statement, Travelport said it intends to use the net proceeds from the offering to repay debt and certain other liabilities.
Its total indebtedness was $2.77 million as of Sept. 2, according to its SEC filing.
Orbitz stock sale
Travelport also told the SEC that it sold 39 million shares of Orbitz Worldwide common stock on July 22 in an underwritten offering for about $312 million. It now owns less than 1% of the outstanding shares.
Travelport said it used the proceeds from the sale to repay $312 million principal amount of term loans.
Orbitz currently is the largest travel agency on its Travel Commerce Platform, accounting for 7% of net revenue in 2013.
Its next nine largest travel agency customers accounted for an additional 21% of net revenue in 2013.
Travel agency contracts representing approximately 23%, 22%, 11% and 44% of 2013 revenue are up for renewal in 2014, 2015, 2016 and beyond, respectively.