Travelport begins roadshow for $650 million eight-year notes

By Paul Deckelman

New York, March 5 – Travelport Worldwide Ltd. was heard by high-yield syndicate sources on Monday to have begun a roadshow for a proposed $650 million offering of eight-year senior secured notes (expected ratings B1/B+).

The sources said that the marketing blitz would begin on Monday in New York and continue there through Tuesday, including a 10:30 a.m. ET Tuesday investor meeting and conference call.

The roadshow is scheduled to move on to Boston on Wednesday and then head west to Los Angeles on Thursday and San Francisco on Friday, with pricing expected thereafter.

The Rule 144A and Regulation S for life deal is being brought to market via bookrunners Citigroup Global Markets Inc. – the left lead bookrunner – plus Goldman Sachs & Co., BofA Merrill Lynch, Morgan Stanley & Co. LLC and UBS Securities LLC.

The notes will come with three years of call protection, with a first-call price equal to par plus 50% of the coupon.

There will be an equity clawback feature allowing for the repurchase of up to 40% of the notes and a 101% change-of-control provision.

The notes’ indenture will have customary incurrence covenants only.

The company, a Langley, U.K.-based provider of a wide range of electronic travel commerce services to the global travel and tourism industry and its customers, plans to issue the notes through its Travelport Corporate Finance plc subsidiary.

The notes will be guaranteed fully and unconditionally on a senior secured basis by Travelport Ltd., the issuing subsidiary’s immediate parent entity, and certain of Travelport Ltd.'s existing and future wholly owned subsidiaries that will also guarantee new senior secured credit facilities that the company is entering into (its Travelport Finance (Luxembourg) Sarl subsidiary launched a $1.5 billion seven-year covenant-light term loan B via a Monday investor call, bank loan market sources said).

Travelport expects to use the proceeds from the senior secured notes offering, together with borrowings under the planned new senior secured credit agreement, to repay borrowings under its existing credit agreement in full and pay fees and expenses related to the offering.

Sara Rosenberg contributed to this report

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