Sabre Corporation said it is moving ahead with a $1.1 billion offering of senior secured notes through its indirect subsidiary, Sabre Financial Borrower.
The company said the notes will be guaranteed by Sabre Financing Holdings and certain existing and future foreign subsidiaries, with those foreign guarantees capped at $400 million. The notes and guarantees will be secured by a first-priority claim on substantially all of the property and assets of Sabre Financial and Sabre Financing, plus a pledge of the loan receivables under the new intercompany loan and all equity interests in Sabre Financial held by Sabre Financing.
Sabre Financial plans to use the proceeds from the notes to fund a new intercompany loan to Sabre GLBL. Sabre GLBL then plans to use that money to prepay its existing intercompany loan from Sabre Financial at 100% of principal, plus a make-whole premium and accrued interest.
After that prepayment, Sabre Financial said it intends to use the cash it receives to retire other debt, including through its concurrently announced tender offer and consent solicitation for its 11.125% senior secured notes due 2029. The company also said the money may be used to repurchase debt in the open market, through privately negotiated transactions, or through tender or exchange offers, along with related interest, premiums, fees and expenses.
The company did not disclose any change from a prior offering size, but the new issue is set at $1.1 billion in aggregate principal amount. As a result of these announcements, the company's shares have moved 6.94% on the market, and are now trading at a price of $2.235. Check out the company's full 8-K submission here.
