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Business
:- Global
online travel company
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Listing :-
New York Stock Exchange (NYSE)
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Symbol:- "OWW"
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Overview |
Valuations |
Offer/Objects |
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The Offering
( can be change at last moment, subject to demand ) |
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Common
stock offered :-
34,000,000
shares of
common stock par value $0.01 |
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Common
stock outstanding after this offering :- 82,912,526
shares of common stock par value $0.01
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Offer
price range :- $16.00 and $18.00
per share
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Offer
Details
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Common
stock offered by company |
34,000,000
shares |
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Underwriters’
option to purchase additional shares |
05,100,000
shares |
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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.
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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.
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Out
of $860 million intercompany notes Company expect to repay
approximately $530 million by proceeds from a term loan.
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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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