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Sabre enters commitment for $665 million term loan from Centerbridge
Chicago, May 25 – Sabre GLBL Inc., a wholly owned subsidiary of Sabre Corp., entered into a commitment letter with lenders led by affiliates of Centerbridge Partners, LP for a new $665 million senior secured credit facility that will list newly created wholly owned subsidiary Sabre Financial Borrower, LLC as borrower, according to a press release and an 8-K filing with the Securities and Exchange Commission.
The new facility will be secured by an intercompany loan by the borrower to Sabre GLBL and will receive direct guarantees from, and security interest in assets of, certain foreign subsidiaries of Sabre.
The borrower entity will loan the proceeds to Sabre GLBL.
The proceeds will be used for a capped tender offer for three notes.
The outside date for the loan commitment is July 24.
A minimum amount of $500 million must be drawn, with the additional $165 million possibly incurred as incremental term loans.
The term loan will mature on Dec. 15, 2028.
Interest will be paid in cash, but the borrower may elect to pay it in kind from the closing date to Dec. 31, 2025.
The reference rate will be based on the average of the highest yield to maturity of any tranche of Sabre GLBL’s outstanding reference debt on each of the 20 prior trading days plus a margin. The initial reference rate will be 13% plus 150 basis points cash interest or 300 bps PIK.
There is make-whole prepayment protection through the second anniversary. Between year two and three there will be a prepayment premium of half of the applicable interest margin and then between year three and four prepayments would be 25% of the applicable interest margin.
There is a minimum liquidity covenant for the guarantors and their subsidiaries of at least $100 million.
Sabre is a Southlake, Tex.-based software and technology company for the travel industry.
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