Benzinga | Aug 21, 2020 07:04AM EDT

Despegar.com Announces $50M Investment By Waha Capital; Co. Will Issue And Sell Series B Preferred Shares Convertible Into Ordinary Shares For An Aggregate Purchase Price Of $50 Million

Strengthens Balance Sheet and Provides Financial Flexibility to

Execute Strategic Growth Objectives while Navigating COVID-19 Pandemic

Despegar.com (the "Company"), the leading online travel agency in Latin America, today announced that on August 20, 2020 it entered into a private placement with Waha Capital through which it will issue and sell series B preferred shares convertible into ordinary shares for an aggregate purchase price of $50 million. The Company intends to use the proceeds from this transaction for general corporate purposes, including potential acquisitions.

Commenting on the transaction, Damian Scokin, Chief Executive Officer of Despegar, stated, "We are operating in unprecedented business conditions and have acted quickly and decisively over the past few months by undertaking a number of actions to augment our liquidity levels. This capital raise further underscores our commitment to strengthening our balance sheet by providing additional financial flexibility to grow the company. Waha Capital has a strong track record investing in companies that provide growth opportunities and shares our vision of the future of Despegar in the region."

"Our confidence in the Company's growth prospects and commitment to shareholder value is further emphasized by the financing we are announcing today," concluded Mr. Scokin.

Amr AlMenhali, Chief Executive Officer of Waha Capital, commented: "With its unique combination of broad product offerings and payment capabilities, Despegar has attained a leading position in online travel bookings in the region. We are excited about this investment as we see a potential for significant value creation, and it further diversifies our portfolio, both in terms of sector and geography. This investment helps ensure that Despegar has the resources to sustain market leadership and emerge from the current economic environment stronger," concluded Mr. AlMenhali.

Additional information regarding the transactions is included in a Form 6-K that Despegar will file with the U.S. Securities and Exchange Commission.

Citigroup and Morgan Stanley served as financial advisors to Despegar and Simpson Thacher & Bartlett LLP and Conyers Dill & Pearman served as legal counsel to Despegar. Shearman and Sterling served as legal counsel to Waha Capital.

About Despegar.com

Despegar is the leading online travel company in Latin America. With over two decades of business experience and operating in 20 countries in the region, Despegar accompanies Latin American travelers from the moment they dream of taking a trip until they share their memories of that trip. Thanks to the strong commitment to technological development and customer service, Despegar offers a customized experience to more than 18 million customers.

Despegar's websites and leading mobile apps offer products from over 270 airlines, more than 690,000 accommodation options, as well as more than 1,260 car rental agencies and approximately 200 destination services suppliers with more than 7,500 activities throughout Latin America. The Company owns and operates two well-recognized brands, Despegar, its global brand, and Decolar, its Brazilian brand. Despegar is traded on the New York Stock Exchange (NYSE:DESP). For more information, please visit www.despegar.com.