By Abigail W. Adams
Portland, Me., April 14 – Sabre Corp. priced an upsized $300 million of five-year exchangeable notes after the market close on Monday at par with a coupon of 4% and an initial conversion premium of 32.5%, according to a company news release.
Pricing came richer than initial price talk for a coupon of 4.5% to 5% and an initial exchange premium of 22.5% to 27.5%, according to a market source.
The notes will be issued by subsidiary Sabre GLBL Inc. and exchangeable for Sabre Corp. common stock.
Goldman Sachs & Co. LLC, BofA Securities Inc. and Morgan Stanley & Co. LLC were joint bookrunners for the Rule 144A offering, which carries an upsized greenshoe of $45 million.
The initial size of the offering was $250 million with a greenshoe of $37.5 million.
The notes are non-callable. They are putable upon a fundamental change.
There is dividend protection.
The notes will be settled in cash, shares or a combination of both at the company’s option.
Concurrently with the convertible notes offering, Sabre priced an upsized $775 million of five-year senior secured notes at par to yield 9¼%.
Proceeds will be used for general corporate purposes.
Sabre is a Southlake, Tex.-based software and technology company serving the global travel industry.
| Issuer: | Sabre GLBL Inc.
|
| Exchange entity: | Sabre Corp.
|
| Securities: | Convertible senior notes
|
| Amount: | $300 million
|
| Greenshoe: | $45 million
|
| Maturity: | April 15, 2025
|
| Bookrunners: | Goldman Sachs & Co. LLC, BofA Securities Inc. and Morgan Stanley & Co. LLC
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Conversion premium: | 32.5%
|
| Conversion price: | $7.88
|
| Conversion rate: | 126.9499
|
| Call options: | None
|
| Put options: | Upon a fundamental change
|
| Pricing date: | April 13
|
| Distribution: | Rule 144A
|
| Talk: | Initial talk for a coupon of 4.5% to 5% and an initial exchange premium of 22.5% to 27.5%
|
| Stock symbol: | Nasdaq: SABR
|
| Stock price: | $5.95 at market close April 13
|
| Market capitalization: | $1.627 billion
|
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