Sabre plans $975 million senior secured notes offering

SOUTHLAKE, Texas - Sabre Corporation (NASDAQ: SABR), a significant player in the travel technology sector currently valued at $1.14 billion, has announced through its subsidiary, Sabre GLBL Inc., their intent to offer senior secured notes amounting to $975 million. According to InvestingPro data, the company already carries a substantial debt burden of $5.12 billion, making this offering a crucial financial move. The offering’s details, including its size, terms, and timing, are subject to market conditions and other determining factors, with no guarantee that it will be finalized as proposed, if at all.

These senior secured notes will be backed by guarantees from Sabre Holdings Corporation and each subsidiary that borrows or guarantees under Sabre GLBL’s senior secured credit facilities, with some exceptions. The guarantees, along with the notes themselves, will be secured by a first-priority interest in nearly all assets of Sabre GLBL and the guarantors, excluding standard exclusions.

The funds raised from this offering are earmarked for the prepayment of outstanding borrowings under an intercompany loan agreement with Sabre Financial Borrower, LLC, which will be directed towards full prepayment of Sabre Financial Borrower, LLC’s senior secured term loan due 2028. While the company maintains impressive gross profit margins of 58.51%, InvestingPro analysis indicates it hasn’t been profitable over the last twelve months, highlighting the importance of this debt restructuring. For deeper insights into Sabre’s financial health and detailed analysis, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. Any remaining proceeds will be allocated to prepay, redeem, or repurchase other debts, whether through the open market, private transactions, or tender or exchange offers.

This private offering targets qualified institutional buyers per Rule 144A and non-U.S. persons outside the United States under Regulation S of the Securities Act of 1933, as amended. The securities involved have not been registered under the Securities Act or any state securities laws and cannot be offered or sold in the U.S. without registration or an applicable exemption from registration requirements.

Sabre Corporation, headquartered in Southlake, Texas, is known for tackling significant challenges in the travel industry by providing advanced technology solutions for partners including airlines, hoteliers, and agencies, facilitating retail, distribution, and fulfillment of travel on a global scale. The company’s stock has shown strong recent performance despite high price volatility, trading at $2.95. InvestingPro subscribers have access to 7 additional key insights about Sabre’s market position and future prospects through exclusive ProTips.

The information presented in this article is based on a press release statement, and it should be noted that forward-looking statements are subject to risks and uncertainties, and actual events may differ materially from those projected.

In other recent news, Sabre Corporation reported its first-quarter 2025 earnings, revealing flat revenue at $777 million, which fell short of the forecasted $793.4 million. The earnings per share (EPS) were zero, missing the expected $0.002, leading to investor disappointment. Despite the revenue stagnation, Sabre experienced a 5% increase in adjusted EBITDA, reaching $150 million, attributed to improved operational efficiencies. Sabre also announced the sale of its Hospitality Solutions business for $1.1 billion, with plans to use approximately $960 million of the proceeds to pay down debt, a move expected to reduce the company’s leverage significantly.

The company reaffirmed its guidance for high single-digit revenue growth in 2025 and anticipates double-digit growth in air and hotel B2B distribution bookings. In executive news, Sabre appointed Jennifer Catto as its new Chief Marketing Officer, aiming to enhance brand development and customer engagement. Sabre’s strategic focus remains on generating free cash flow, reducing leverage, and driving sustainable growth through innovative technology solutions. The company expects to see positive impacts from these strategic moves in the coming quarters, according to their financial outlook.

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