Sabre Corporation Initiates New Debt Exchange Offers for 2029

Sabre GLBL Inc. Launches Exchange Offers for Senior Debt Securities

Today, Sabre Corporation announced a significant step in its financial strategy with Sabre GLBL Inc., its wholly-owned subsidiary. They have initiated exchange offers for certain outstanding 11.250% Senior Secured Notes due 2027 and 8.625% Senior Secured Notes due 2027. The main goal of these offers is to swap these existing notes for new 10.750% Senior Secured Notes due 2029, with a combined maximum amount of $500 million.

Objectives of the Exchange Offers

The primary objective of the exchange offers is to extend the maturity period of the existing notes, thereby improving the company’s debt profile. Currently, the senior secured notes maturing in 2027 will be converted to new notes that extend until 2029, providing Sabre with additional time to manage its financial obligations.

Summary of Exchange Terms

In total, the new notes' issuance will require a minimum of $250 million. Additionally, all accepted notes will follow an Acceptance Priority Level where existing notes are prioritized based on a set numerical order. This will ensure that the most favorable terms are offered to the highest-ranking notes first.

Details of the New Notes

The new debt instruments are designed to be secure, senior, and will match the existing senior obligations of Sabre GLBL. Importantly, the new notes will benefit from a first-priority security interest in the assets of Sabre GLBL and its guarantors, ensuring robust backing. Investors should be aware that the term notes will initially offer interest at 10.750% per annum.

Response to Market Demand

In addition to the exchange offers, Sabre GLBL is also looking into opportunities to amend its existing senior secured term loans, aimed at optimizing its capital structure. This strategy highlights Sabre's proactive approach to responding to changing market conditions and enhancing its financial resilience.

Timelines and Conditions for the Exchange Offers

The exchange offers will officially close at 5:00 p.m. New York City time on December 9, unless extended. Participants can withdraw their existing notes from the exchange at any time up until the withdrawal deadline on November 21. This systematic approach ensures that all transaction participants have ample opportunity to make informed decisions.

The Importance of Participation

Eligible participants include holders of the existing notes who can certify they meet specified criteria as either qualified institutional buyers or non-U.S. persons. This ensures that the exchange offers maintain compliance with relevant regulations while also targeting the appropriate investor base.

Importance of the Offering Circular

The Offering Circular associated with the exchange deals provides comprehensive terms and details about the process. Eligible holders are strongly encouraged to review this document thoroughly to understand all facets of the exchange.

Conclusion on the Exchange Offers

In summary, Sabre's approach reflects a strategic effort to enhance its flexibility and address upcoming maturity dates efficiently. By undertaking these exchange offers, Sabre is positioning itself to navigate future financial challenges more effectively.

Frequently Asked Questions

What are the reasons behind Sabre's exchange offers?

Sabre aims to extend the maturity of its existing debts, allowing for improved financial management and reduced refinancing pressure.

What is the interest rate on the new notes?

The new notes will carry an interest rate of 10.750% per annum, which is competitive in the current market.

How will the exchange affect existing note holders?

Eligible holders can exchange their existing notes for new, more favorable terms that extend maturity to 2029, enabling better financial stability.

What should eligible holders do to participate in the exchange?

Eligible holders need to certify their investor status and follow the instructions in the Offering Circular to participate in the exchange offers.

Are there any risks associated with the exchange offers?

As with any financial offering, there are risks involved, including market conditions that may affect the terms and acceptance of the new notes.

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