UBS, Credit Suisseand Lehman Brothersmet with investors last Wednesday in New York and last Thursday in London to launch syndication of a $2.6 billion senior secured credit facility for Travelport, which counts the Web site Orbitzamong its assets. According to a banker, the deal consists of a six-year, $275 million revolver; a seven-year, $125 million synthetic letter of credit facility and a seven-year, $2.2 billion term loan. Pricing could not be determined. The facility will be used to finance the $4.3 billion acquisition of Travelport by The Blackstone Group from Cendant Corp.
Travelport is Cendant's online travel subsidiary that also includesCheaptickets.com, and Galileo, a computerized reservation service for travel agents. This is the second move in New York-based Cendant's break-up plan to split the company into four independent businesses: real estate, travel distribution, hospitality and vehicle rental. Cendant expects to spin-off two more subsidiaries--Realogy Corp., its real estate brokerage business, and its hotel company Wyndham Worldwide Corp.--July 31 through the distribution of 100% of the companies' common stock to Cendant stockholders.
JPMorganand Deutsche Bankled a $2.375 billion deal for Aviswhen Cendant spun off the rental car company back in April. Due to oversubscription, pricing on the $875 million term loan was flexed down from LIBOR plus 1 1/2% to LIBOR plus 1 1/4% (CIN, 4/14).
A Blackstone spokesman declined comment. Calls to spokesmen at Cendant and Travelport were not returned.