Moody's assigns Sabre facilities Ba3

Moody's Investors Services said it assigned a Ba3 rating to Sabre GLBL Inc.’s $1.04 billion of senior secured term loan B facilities. The borrower is a wholly-owned subsidiary of Sabre Holdings Corp. All other ratings, including Sabre's Ba3 corporate family rating and negative outlook are unchanged.

Proceeds will be used to refinance the company's term loan due 2027 of roughly $635 million and fully repay and terminate commitments, advances plus letters of credit, under the drawn revolving credit facility due 2024.

“The transaction is opportunistic and provides Sabre with greater flexibility. By refinancing the existing revolver, Sabre extends the maturity of $375 million of outstanding advances under the current $400 million revolver and eliminates the leverage covenant under the revolver agreement. The transaction is largely leverage neutral, however, an incremental $30 million of debt is being funded which will provide excess cash, most of which will be used to pay transaction expenses and provide collateral for up to $20 million of letters of credit under the revolver,” Moody’s said in a press release.

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