This concise case provides the epilogue of The Auction for Travelport (A). Blackstone chose to bid by itself, obtained Travelport for $4.3 billion and consequently went on to get another GDS, Travelspan, for $1.4 billion. It then combined the 2 GDSs and partly spun off in an IPO its online travel companies, re-named Orbitz Worldwide; it kept the GDS and wholesale travel companies.
By the end of that year (2006), Blackstone had actually produced expense savings of $270 million. In 2007 Blackstone likewise carried out a significant capital market deal with Travelport, releasing a brand-new $1.1 billion Senior Unsecured PIK Term Loan, that enabled Blackstone to reclaim all its equity in the deal. Consequently, throughout the monetary crisis of 2008 and 2009, Blackstone and Travelport bought most of the $1.1 bn PIK loan and other financial obligation outdoors market at rates varying from 18 % to 57 % of par value, creating a $610 million gain.
The Auction for Travelport (B) case study solution
PUBLICATION DATE: April 01, 2010 PRODUCT #: 710475-PDF-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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