Sabre driving by with $535 million five-year senior secured notes; initial guidance emerges

By Paul A. Harris

Portland, Ore., Nov. 21 – Sabre GLBL Inc., a wholly owned subsidiary of Sabre Corp., plans to price a $535 million offering of five-year senior secured notes (Ba3/B) in a Monday drive-by, according to market sources.

The deal, which was set to kick off on a Monday morning conference call with investors, is in the market with initial guidance that has the notes coming at an original issue discount of 2 points to yield in the low-to-mid 12% area, according to a sellside source.

The deal came to market on the back of $550 million of reverse inquiry, the source added.

BofA Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., MUFG Securities Americas Inc. and PNC Capital Markets LLC are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after 2.5 years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

The Southlake, Tex., travel software and technology company plans to use the proceeds plus cash on hand to repay approximately $536 million under its term loan B.

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