NEW YORK (TheStreet) -- Shares of Orbitz Worldwide Inc. (OWW) are up 6.94% to $7.40 in pre-market trade after the online travel company announced the pricing of a previously announced underwritten public offering of 7.5 million shares of its common stock held by an affiliate of Travelport Limited, at a price to the public of $6.60 per share.
The underwriters have a 30-day option to purchase up to an additional 1.125 million shares from the selling stockholder. Orbitz Worldwide will not receive any proceeds from the offering. The offering is scheduled to close on May 29, 2014..
Credit Suisse Securities (USA) (CS) and Morgan Stanley & Co. (MS) are serving as lead joint book-running managers. Deutsche Bank Securities (DB) and UBS Securities (UBS) are acting as joint book-running managers of the offering. Cowen and Company (COWN) is serving as co-manager of the offering.
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."