NEW YORK (TheStreet) -- Orbitz Worldwide (OWW) stock is sliding in post-market trading Monday after the company announced a secondary offering of 7.5 million shares on behalf of a selling shareholder, Travelport Limited. After the bell, shares fell 1.3% to $7.46.
Underwriters have also been granted a 30-day option to purchase up to an additional 1.125 million shares. Orbitz will not receive any proceeds from the offering.
Credit Suisse and Morgan Stanley are serving as lead joint book-running managers, while Deutsche Bank and UBS are acting as joint book-running managers of the offering. Cowen and Company will serve as co-manager.
TheStreet Ratings team rates ORBITZ WORLDWIDE INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ORBITZ WORLDWIDE INC (OWW) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: