Sabre Expands Accounts Receivable Securitization Facility to $235 Million
Sabre Corporation, a leading technology provider to the global travel industry, announced that its indirect subsidiary, Sabre Securitization LLC, has increased the overall size of its existing accounts receivable securitization facility from $200 million to $235 million and extended its maturity date to March 2027.
The AR Facility now consists of a fully-funded $120 million "first-in, last-out" tranche, provided by various entities advised by affiliates of Centerbridge Partners, L.P., and a $115 million revolving tranche provided by the existing lender, PNC Bank N.A. PNC will continue to act as the administrative agent.
The transactions described above, including the establishment of the FILO Facility, increased the drawn amount under the AR Facility from approximately $120 million immediately prior to the transactions to approximately $232 million immediately after the transactions. The incremental drawn amount was used to fund cash to Sabre's balance sheet and to pay transaction costs.
The new FILO Facility and amendment and extension to Sabre's existing AR Facility continue a series of recent transactions focused on strengthening Sabre's balance sheet, bolstering its liquidity, and enhancing its financial flexibility. As previously announced, in March 2024, the Company completed an exchange of approximately $43.6 million of existing Senior Secured Notes due 2025 for additional 8.625% Senior Secured Notes due 2027 and an exchange of $150 million of existing 4.000% Exchangeable Senior Notes due 2025 for Exchangeable Senior Notes due 2026 (the "Exchangeable Notes Transaction"). As a result of execution of these transactions and closing of the FILO Facility and amended AR facility, Sabre has reduced its 2025 funded debt maturities by over $300 million and increased its liquidity by over $70 million. This reduction in 2025 funded debt maturities follows the cash tender and exchange offers that Sabre completed in 2023. Together with the 2023 transactions, Sabre has refinanced approximately $1,832 million, or almost 90%, of the debt that was previously maturing in 2025.
Mike Randolfi, Chief Financial Officer, commented, "We are pleased to complete this series of financing transactions to strengthen the balance sheet as we continue to focus on execution of our long-term strategic and financial priorities. When combined with our cash balance, we believe these actions solidly position us to deliver on our strategic priorities, which are to generate free cash flow and de-lever the balance sheet, deliver sustainable growth, drive innovation and reduce our cost structure. Following the completion of these recent transactions, we are well positioned to repay our remaining 2025 and 2026 debt maturities with cash from our balance sheet and from expected future free cash flows. We appreciate the support of our existing lending partners PNC and Centerbridge, and we look forward to continuing to drive long-term growth, as well as achieving our objectives."
Perella Weinberg Partners LP served as financial advisor and Davis Polk & Wardwell LLP served as legal counsel to Sabre on these transactions. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to Centerbridge and Mayer Brown LLP acted as legal counsel to PNC on the FILO Facility and amended AR Facility. J. Wood Capital Advisors LLC served as a financial advisor to Sabre on the Exchangeable Notes Transaction.
