Travelport debt falls by $247 million during first half, $937 million YTD

By Lisa Kerner

Charlotte, N.C., Aug. 4 – Travelport Ltd. has completed deleveraging transactions totaling $937 million this year to date that include debt-for-equity exchanges and the sale of substantially all of its shares in Orbitz Worldwide, according to the company’s earnings news release.

On a pro forma basis, net debt at June 30 would have been $2.5 billion, and the total leverage ratio would have been 4.9 times.

Travelport's net debt was reduced in the first half of 2014 by $247 million to $3.1 billion as of June 30. Cash, cash equivalents and cash held as collateral totaled $163 million.

During the quarter, Travelport completed a $317 million debt-for-equity exchange transaction and sold its 8.6 million Orbitz Worldwide shares for net proceeds of $54 million.

In July, the company completed $254 million of debt-for-equity exchange transactions and received net proceeds of $312 million from the sale of 39 million Orbitz Worldwide shares.

Net revenue for the first half of the year was up 4% year over year at $1.2 billion, and adjusted EBITDA was up 6% from the prior-year period at $297 million.

The company generated net cash from operating activities for the six months ended June 30 of $42 million, a $30 million increase from a year ago.

Travelport is an Atlanta-based provider of transaction processing services to the travel industry.

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