The company increased the offering to 34 million shares from 20 million shares and priced it at $8.25 a share. The offering, which the company expects to close on Tuesday, July 22, contains a 30-day option for underwriters to purchase up to an additional 5 million shares. Orbitz will receive no proceeds from the offering.
The stock was down 4.35% to $8.58 at 9:54 a.m.
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Separately, 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: