Orbitz disappoints with $15/share IPO price

Orbitz Worldwide has priced the initial public offering at $15 per share, according to media reports this is below expectations. Orbitz’s portfolio of brands includes Cheaptickets, ebookers.com, and HotelClub.

The offering of 34 million shares was expected to price in the range of $16 to $18.

The common stock will trade on the New York
Stock Exchange under the symbol “OWW.” Orbitz Worldwide has granted the
underwriters a 30- day option to purchase up to 5,100,000 additional shares
of Orbitz Worldwide common stock at the public offering price. The
completion of the initial public offering is scheduled for Wednesday, July
25, 2007, subject to customary closing conditions.
  Orbitz Worldwide will use all of the net proceeds from the offering
plus approximately $530 million of borrowings under its new senior secured
credit agreement to repay indebtedness it owes to Travelport and,
immediately prior to the offering, to pay a dividend to Travelport.
  Morgan Stanley & Co. Incorporated, Goldman Sachs & Co., Lehman Brothers
Inc. and J.P. Morgan Securities Inc. are the global coordinators with
Credit Suisse and UBS Investment Bank acting as joint lead managers. Thomas
Weisel Partners LLC, Pacific Crest Securities, Piper Jaffray, and Stifel
Nicolaus are co-managers of the offering.