Moody's assigns Sabre notes, facility Ba3

Moody's Investors Service said it assigned a Ba3 rating to the proposed offering of $300 million of senior secured notes by Sabre GLBL Inc., a wholly-owned subsidiary of Sabre Holdings Corp. Moody's also assigned a Ba3 rating to Sabre GLBL Inc.'s amended senior secured revolver facility for up to $400 million and amended senior secured term loan A ,$156 million extended portion of term loan A.

Note proceeds will be used to refinance a portion of the $456 million term loan A.

The $400 million revolver and $156 million portion of term loan A will be extended to mature in February 2024 from July 2022. “Although the proposed transactions are debt and leverage neutral, the issuances extend the maturities of the $400 million revolver and the existing $456 million term loan A. The new debt issuances follow yesterday's proposal by Sabre to raise $550 million of new equity ($300 million mandatory convertible preferred shares plus $250 million of common equity). As a result, Sabre has more than a three-year runway with no significant debt maturities to manage through current operating challenges as a result of the coronavirus pandemic,” Moody’s said in a press release.

All other ratings and the negative outlook are unchanged, Moody’s said.

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