Sabre Corporation refinanced a portion of its existing indebtedness. Sabre incurred no additional indebtedness as a result of the refinancing above the refinanced amount, other than amounts covering the original issue discount (OID), certain interest, fees and expenses. The refinancing has meaningfully improved Sabre’s debt maturity profile.
The refinancing included the application of the proceeds of a new $675 million term loan “B” facility, borrowed by its wholly-owned subsidiary Sabre GLBL under its existing senior secured credit agreement, with the effect of extending the maturity of approximately $647 million of the existing term loan B credit facility incurred prior to Aug. 15, 2022 under the credit agreement. The new facility matures on June 30, 2028 and offers Sabre the ability to prepay or repay the new facility after 12 months or to prepay or repay at a 101 premium before that date. The interest rates on the new facility will be based on term SOFR, replacing LIBOR, plus an applicable margin.
The new facility is guaranteed by Sabre Holdings Corporation and each subsidiary of Sabre GLBL that guarantees the credit agreement. The new facility and the guarantees thereof are secured, subject to permitted liens, by a first-priority security interest in the same collateral that secures Sabre GLBL’s other senior secured indebtedness, which is substantially all present and hereafter acquired property and assets of Sabre GLBL and the guarantors (other than certain excluded assets).
BofA Securities acted as lead left bookrunner, Goldman Sachs Lending Partners, Morgan Stanley Senior Funding and PNC Capital Markets acted as joint bookrunners and BofA Securities acted as sole lead arranger. Bank of America is the administrative agent and the collateral agent for the credit agreement.
