Travelport sets five-tranche structure, price talk on $1.4 billion equivalent deal, to price Friday

By Paul A. Harris

St. Louis, Aug. 9 - Chicago-based travel services provider TDS Investor Corp. (Travelport) unveiled the structure as well as the price talk on its $1.4 billion equivalent offering of high-yield notes in five tranches, according to a market source.

The offering is comprised of three tranches of eight-year senior notes (B3/B-):

• $400 million to $450 million of fixed-rate notes, non-callable for four years, with priced talk in the 9¾% area;

• $150 million to $200 million of floating-rate notes, non-callable for two years, with price talk in the Libor plus 450 basis points area;

• €235 million of floating-rate notes, non-callable for two years, with price talk in the Euribor plus 450 basis points area.

In addition, the company plans to price $300 million of 10-year senior subordinated notes with price talk in the 11¾% area and €150 million of 10-year senior subordinated notes with price talk of 10¾% to 11%. Both tranches of senior subordinated notes (Caa1/B-) come with five years of call protection.

The deal is expected to price Friday morning, New York time.

Lehman Brothers, Credit Suisse, UBS Investment Bank, Citigroup and Deutsche Bank Securities are joint bookrunners for the Rule 144A and Regulation S transaction.

Proceeds will be used to help fund the $4.3 billion cash purchase of Travelport by The Blackstone Group from Cendant Corp.

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