Worldspan has tapped Credit Suisse, Lehman Brothers and UBS for a $1 billion credit facility, expected soon, to fund a dividend recapitalization to existing shareholders. The deal comprises a $50 million revolver, a $700 million first-lien term loan and a $250 million second-lien term loan. Pricing could not be determined by press time.
Worldspan announced last Thursday it would be acquired by rival travel resource company Travelport in a transaction that values the company at approximately $1.4 billion. Worldspan is currently owned by Court Square Capital Partners and Ontario Teachers' Pension Plan. The recap is intended to be phase one of the eventual sale to Travelport, according to a Moody's Investors Service release. As part of the recapitalization, Travelport and one of its parent companies each loaned $125 million to Worldspan in exchange for a payment-in-kind note.
The bank trio also financed The Blackstone Group's $4.3 billion acquisition of Travelport from Cendant Corp. back in July (CIN, 7/21). Calls to spokesmen at Worldspan and Travelport were not returned.