Orbitz Q3 Misses; Sets Debt-For-Equity Swap; Raises $50M From Travelport

Orbitz (OWW) this morning posted slightly disappointing results for the third quarter.

The online travel agency reported revenue of $187 million and profits of 8 cents a share; the Street had expected $202 million and 12 cents. Revenue was down 22% from a year ago. Gross bookings were down 6% from a year ago,

Orbitz also announced a deal for PAR Investment Partners to swap $49.68 million of senior term debt for 8.16 million common shares, and another deal to sell $50 million of common stock to Travelport, a company controlled by Blackstone which already had owned a controlling position in the company.  Both deals were priced at $5.54 a share, and both are expected to close in January 2010. After the deal, Travelport will hold a 54.5% stake in OWW common shares.

Proceeds are expected to be used for general corporate purposes, which could include investments and debt repayments.

PAR will get the right to name on director to the company’s board, and Travelport will get an extra board seat.

OWW this morning is down 7 cents at $5.34.