S&P rates Sabre loan BB-

S&P said it assigned a BB- rating and 3 recovery rating to Sabre Holdings Corp. and Sabre GLBL Inc.'s $1 billion senior secured credit facility, which consists of a $400 million senior secured revolving credit facility and $600 million senior secured incremental term loan A due in 2021.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The $400 million revolver replaces Sabre's existing $405 million revolving credit facilities.

The companies used the proceeds from the $600 million incremental term loan A to repay $470 million revolving and term loan B debt, the agency explained.

Sabre used the remaining proceeds to pay fees and increase its cash balance, S&P added.

The new senior secured credit facility will mature July 18, 2021, subject to an earlier springing maturity of Nov. 19, 2018 if the term loan B hasn't been refinanced by Nov. 19, 2018, the agency said.

The company’s BB- corporate credit rating and stable outlook are unchanged.

As of March 31, the company's adjusted debt leverage was 3.9x, which is within the threshold of 3x to 4x for the rating, S&P said.

Debt leverage also is expected to decline to the mid-3x range by the end of 2016, absent any potential litigation settlement with U.S. Airways Inc., which could increase leverage, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.