Orbitz receives $100 million from 2 investors

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Orbitz receives $100 million from 2 investors

2009-11-05 20:50:00

Online-travel company Orbitz Worldwide Inc. said Thursday it received equity investments totaling $100 million from two companies.

Separately, Orbitz reported it swung to a profit in the third quarter.

Investment firm PAR Investment Partners has purchased 8.2 million shares of Orbitz for $49.7 million in senior term debt. Travel-services company Travelport is buying 9 million shares of Orbitz for $50 million.

Orbitz said the investments allow it to reduce its debt by $50 million and increase its cash by $50 million.

"These significant investments in Orbitz by PAR and Travelport demonstrate confidence in our company's strategic direction, operating team and ability to grow the business," President and CEO Barney Harford said in a statement.

Both investments were set at a price of $5.54 per share. The investments are expected to close in January.

Under the investment agreement, both investors will have the right to name a director to the company's board, Orbitz said. This will increase the total number of directors to 10, from eight.

Shares of Orbitz fell 51 cents, or 9.4 percent, to $4.90 in morning trading.

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