#USA #Sabre Corporation #Senior Secured Notes #Southlake #Sabre Financial Borrower

Sabre Corporation Upsizes Public Offering of Secured Notes

In a significant financial move, Sabre Corporation, listed on Nasdaq under the symbol SABR, has announced an upsized offering by its indirect subsidiary, Sabre Financial Borrower, LLC. The offering now stands at $1.35 billion, a substantial increase from the previously anticipated $1.1 billion.

The core of this offering is the Senior Secured Notes, which feature a compelling 9.875% interest rate and are set to mature on October 15, 2032. These notes will provide investors with interest payments on a semi-annual basis, allowing for a consistent return on investment. The closing of this offering is projected to occur on September 28, 2026, contingent upon typical closing conditions being met.

Guarantees and Collateral Structure

The Senior Secured Notes come with robust backing. They will be fully guaranteed on a secured basis by Sabre Financing Holdings LLC, which is the direct parent company of Sabre Financial. Additionally, several international subsidiaries of Sabre will serve as Foreign Guarantors. Notably, the guarantees from these Foreign Guarantors are limited to an aggregate amount of $400 million.

The notes and their guarantees will be secured by a first-priority claim in nearly all existing and future assets owned by Sabre Financial and Sabre Financing. This includes a pledge of loan receivables linked to Sabre Financial under a newly initiated intercompany loan arrangement. Moreover, specific equity interests held by Sabre Financing in Sabre Financial will also be pledged as collateral.

Certain guarantees and associated collateral will be executed after the issuance date of the Senior Secured Notes, enhancing the security further for investors.

Strategic Utilization of Proceeds

The proceeds generated from this sale are intended for multiple strategic applications. Primarily, Sabre Financial plans to allocate the funds to extend a new intercompany loan to Sabre GLBL Inc. Sabre GLBL wishes to use a part of this loan to prepay an existing intercompany loan under specified terms. After this prepayment, any remaining proceeds will aim to reimburse other existing debt obligations, which may involve repurchasing or redeeming certain senior secured notes.

Simultaneously, the company will initiate related tender offers for its existing long-term debt, thereby optimizing its capital structure and potentially reducing interest expenses over time.

Regulatory Framework and Compliance

This transaction is structured as a private offering, targeting qualified institutional buyers and non-U.S investors in compliance with the Securities Act of 1933. As such, these Secured Notes will not be registered under U.S. securities laws, restricting their offer or sale without proper registration or applicable exemption.

Sabre emphasizes that this announcement does not constitute an offer for sale or solicitation to buy these securities. The complete offering details will be provided in a private offering circular to interested parties.

About Sabre Corporation

Sabre Corporation is a global leader in travel technology solutions. Leveraging its extensive travel data cloud, Sabre empowers airlines, hotels, travel agencies, and partners to personalize and optimize travel experiences for consumers worldwide. Operating on a cloud-native, modular architecture, Sabre positions itself as a pivotal player in the evolving landscape of travel technology, focusing on innovation, connectivity, and automation.

With a commitment to shaping the future of travel, Sabre Corporation remains poised for growth and expansion, encouraging strategic investments that capitalize on emerging trends and technologies within the travel sector.

In conclusion, Sabre Corporation's upsized offering of Senior Secured Notes underlines its proactive approach to financing while ensuring a strong structure for investor confidence. As it moves to close this offering, all eyes will be on how these strategic financial maneuvers will impact its future growth trajectories.