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Business :- Global online travel company

Listing :- New York  Stock Exchange (NYSE)

Symbol:- "OWW"

Overview

Valuations

Offer/Objects

The Offering ( can be change at last moment, subject to demand )

Common stock offered :-  34,000,000 shares of common stock par value $0.01

Common stock outstanding after this offering :-  82,912,526 shares of common stock par value $0.01

Offer price range :- $16.00 and $18.00 per share

Offer Details

 

Common stock offered by company

34,000,000 shares

Underwriters’ option to purchase additional shares

05,100,000 shares

Common stock to be outstanding immediately after this offering

82,912,526 shares

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Use of proceeds

Estimate net proceeds to company from this offering will be approximately $535 million, after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by company. A $1.00 increase (decrease) in the assumed initial public offering price of $17.00 per share would increase (decrease) the net proceeds from this offering by approximately $32.00 million, assuming that the number of shares offered by company remains the same.

  • Company intend to use the net proceeds from this offering to repay a portion of the $860 million intercompany notes on which company is the obligor and to pay a dividend to Travelport. The unpaid principal amount of these notes accrues interest at a rate of 10.25% annually and these notes mature on February 19, 2014. The proceeds of these notes were used to purchase assets in an internal reorganization.

  • Out of $860 million intercompany notes Company expect to repay approximately $530 million by proceeds from a term loan.

  • The net proceeds from this offering will be used to pay down the remaining intercompany note balance of $312 million and the remaining proceeds will be remitted to Travelport in the form of a dividend of $223 million depending on the cash balances.

Company expect to use approximately $530 million of borrowings under the term loan portion of this facility to repay indebtedness it owe to Travelport and to pay a dividend to Travelport. Travelport intends to use such proceeds and the dividend to repay indebtedness outstanding under its credit facilities.

 

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The share Outstanding does not give effect to:

  • The underwriters’ option to purchase up to an aggregate of 5,100,000 additional shares of common stock;
  • 2,677,845 shares of common stock issuable upon the exercise of options with an exercise price equal to the public offering price that will be outstanding at the consummation of this offering;
  • 2,387,474 shares of common stock issuable in connection with restricted stock units that will be outstanding at the consummation of this offering; and
  • 434,681 shares of common stock issuable under equity incentive plans.

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This article reflects personal view of the author about the company and one must read offer prospectus and consult its financial adviser before making any investment decision

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