The company said it plans to sell 20 million shared, about 185 of all outstanding shares, on behalf of Travelport Limited. The underwriters of the agreement will have a 30-day option to buy an additional 3 million shares to cover overallotments. Orbitz won't see any proceeds from the offering.
In a separate announcement Orbitz said it expects to report revenue of $248 million for the second quarter, above the $243 million consensus estimate. The company expects adjusted EBITDA of about $45 million for the quarter, in-line with the company's guidance of $42 million to $47 million, and stayed room night growth of 20% year-over-year.
Must read: Warren Buffett's 25 Favorite Stocks
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."