By Paul A. Harris
Portland, Ore., Aug. 20 – Sabre GLBL Inc. priced a massively upsized $850 million issue of five-year senior secured notes (Ba3/B) at par to yield 7 3/8% in a Thursday drive-by, according to market sources.
The issue size increased from $300 million.
The yield printed at the tight end of yield talk in the 7½% area. Initial talk was in the high 7% area to 8%.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Morgan Stanley & Co. LLC, Mizuho Securities USA Inc., Wells Fargo Securities LLC, PNC Capital Markets Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, MUFG, Citigroup Global Markets Inc. and ING Financial Markets LLC.
The Southlake, Tex.-based travel technology company plans to use the proceeds, plus cash on hand, to repay approximately $300 million of debt under its term loan A. The additional proceeds resulting from the $550 million upsizing of the deal will be used to redeem Sabre's 5 3/8% notes due 2023 and other secured debt.
| Issuer: | Sabre GLBL Inc.
|
| Amount: | $850 million, increased from $300 million
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| Maturity: | Sept. 1, 2025
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| Securities: | Senior secured notes
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | Morgan Stanley & Co. LLC, Mizuho Securities USA Inc., Wells Fargo Securities LLC, PNC Capital Markets Corp., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, MUFG, Citigroup Global Markets Inc. and ING Financial Markets LLC
|
| Coupon: | 7 3/8%
|
| Price: | Par
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| Yield: | 7 3/8%
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| Spread: | 710 bps
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| Call protection: | Two years
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| Trade date: | Aug. 20
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| Settlement date: | Aug. 27
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| Ratings: | Moody's: Ba3
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| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7½% area
|
| Marketing: | Drive-by
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