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Sabre (SABR) Refinances Revolving Credit, Term Loan Facilities
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Sabre Corporation (SABR - Free Report) recently announced that it has refinanced a certain portion of existing Term Loan B and Revolving Credit Loan facilities.
Per the terms, the company’s wholly-owned subsidiary, Sabre GLBL, has borrowed a total of $1.048-billion term loan B under the existing senior secured credit agreement. The newly refinanced term loans are in two tranches - a $404 million term loan “B-1” facility and a $644 million term loan “B-2” facility.
The company intends to use the proceeds for the repayment of the existing Term B Loans in full, nearly $633.8 million, and Revolving Credit Loans of $400 million outstanding.
The new credit facilities will mature on Dec 17, 2027. In addition, it allows the prepayment of these facilities after Dec 17, 2021 or at a 101 premium before this date.
Sabre holds a large amount of debt in its balance sheet, which remains a risk for the company. As of Mar 31, 2021, Sabre’s long-term debt amounted to $4.71 billion versus cash and cash equivalents of $1.28 billion. This leaves the company with a significant amount of net debt of $3.43 billion.
It revealed that the recent refinancing will not result in any additional debt other than the amounts incurred on interest, fees and expenses in reference to the credit loans.
The latest move reflects the company’s sustained focus on improving financial flexibility and debt-maturity profile to stay afloat amid challenges posed by the COVID-19 pandemic.
In late December, Sabre also made an announcement of refinancing. It was about Term A loans and the redemption of Sabre GLBL’s Senior Secured Notes. Per the terms, Sabre GLBL borrowed a $637-million term loan "B" facility under the existing senior secured credit agreement.
The company intended to utilize the proceeds from the aforementioned refinancing for the repayment of the existing Term A Loans in full (roughly $134 million) and redeem Sabre GLBL's $500-million outstanding 5.250% Senior Secured Notes, maturing in November 2023.
In September 2020, Sabre readjusted the capital structure to enhance cash on hand and expand the debt-maturity profile. The company generated roughly $598 million in proceeds (net of commissions) from equity offerings, thereby increasing cash on hand.
It extended the scheduled maturity of a major portion of its debt through the issuance of an $850-million aggregate principal amount of new senior secured notes due 2025. The company also extended maturity with respect to a portion of its existing bank facility.
However, uncertainty related to the pandemic and lockdowns in some countries remain major concerns for the company. Global lockdown measures to contain the spread of coronavirus have hit the travel industry hard, thereby hurting Sabre’s travel bookings, financial condition and operating results.
Zacks Rank & Stocks to Consider
Currently, Sabre carries a Zacks Rank #5 (Strong Sell).
Long-term earnings growth rates for Digital Turbine, MakeMyTrip and Advanced Micro Devices are currently projected at 50%, 48.6%, and 35%, respectively.
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Sabre (SABR) Refinances Revolving Credit, Term Loan Facilities
Sabre Corporation (SABR - Free Report) recently announced that it has refinanced a certain portion of existing Term Loan B and Revolving Credit Loan facilities.
Per the terms, the company’s wholly-owned subsidiary, Sabre GLBL, has borrowed a total of $1.048-billion term loan B under the existing senior secured credit agreement. The newly refinanced term loans are in two tranches - a $404 million term loan “B-1” facility and a $644 million term loan “B-2” facility.
The company intends to use the proceeds for the repayment of the existing Term B Loans in full, nearly $633.8 million, and Revolving Credit Loans of $400 million outstanding.
The new credit facilities will mature on Dec 17, 2027. In addition, it allows the prepayment of these facilities after Dec 17, 2021 or at a 101 premium before this date.
Sabre holds a large amount of debt in its balance sheet, which remains a risk for the company. As of Mar 31, 2021, Sabre’s long-term debt amounted to $4.71 billion versus cash and cash equivalents of $1.28 billion. This leaves the company with a significant amount of net debt of $3.43 billion.
It revealed that the recent refinancing will not result in any additional debt other than the amounts incurred on interest, fees and expenses in reference to the credit loans.
Sabre Corporation Price
Sabre Corporation price | Sabre Corporation Quote
The latest move reflects the company’s sustained focus on improving financial flexibility and debt-maturity profile to stay afloat amid challenges posed by the COVID-19 pandemic.
In late December, Sabre also made an announcement of refinancing. It was about Term A loans and the redemption of Sabre GLBL’s Senior Secured Notes. Per the terms, Sabre GLBL borrowed a $637-million term loan "B" facility under the existing senior secured credit agreement.
The company intended to utilize the proceeds from the aforementioned refinancing for the repayment of the existing Term A Loans in full (roughly $134 million) and redeem Sabre GLBL's $500-million outstanding 5.250% Senior Secured Notes, maturing in November 2023.
In September 2020, Sabre readjusted the capital structure to enhance cash on hand and expand the debt-maturity profile. The company generated roughly $598 million in proceeds (net of commissions) from equity offerings, thereby increasing cash on hand.
It extended the scheduled maturity of a major portion of its debt through the issuance of an $850-million aggregate principal amount of new senior secured notes due 2025. The company also extended maturity with respect to a portion of its existing bank facility.
However, uncertainty related to the pandemic and lockdowns in some countries remain major concerns for the company. Global lockdown measures to contain the spread of coronavirus have hit the travel industry hard, thereby hurting Sabre’s travel bookings, financial condition and operating results.
Zacks Rank & Stocks to Consider
Currently, Sabre carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader technology sector include Digital Turbine (APPS - Free Report) , MakeMyTrip Limited (MMYT - Free Report) and Advanced Micro Devices (AMD - Free Report) . While Digital Turbine sports a Zacks Rank #1 (Strong Buy), MakeMyTrip and Advanced Micro Devices carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for Digital Turbine, MakeMyTrip and Advanced Micro Devices are currently projected at 50%, 48.6%, and 35%, respectively.