Travelport launches $2.3 billion term loan B at Libor plus 400 bps

By Sara Rosenberg

New York, Aug. 4 – Travelport LuxCo launched on Monday a $2.3 billion seven-year term loan B with price talk of Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has a 50 bps step-down upon completion of a qualified initial public offering and 101 soft call protection for six months, the source said.

The company’s $2.4 billion credit facility (B3/B-) also includes a $100 million five-year revolver.

Commitments are due on Aug. 13, the source added.

Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc. and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

Proceeds will be used to refinance the company’s existing capital structure, including its first- and second-lien term loans, senior floating-rate notes due 2016, 13 7/8% senior notes due 2016, 11 7/8% senior subordinated notes due 2016, 11 7/8% dollar senior subordinated notes due 2016 and 10 7/8% senior subordinated euro notes due 2016.

Other funds for the refinancing will come from a $500 million senior unsecured bridge loan which may be replaced by or exchanged for high-yield bonds.

Closing is targeted for Sept. 2.

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

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