Bloomberg News

Sabre Said to Seek $250 Million Term Loan to Refinance Debt

August 06, 2012

Sabre Inc., the online travel-booking company owned by TPG Capital and Silver Lake Partners LP, is seeking a $250 million covenant-lite term loan to refinance debt, according to a person with knowledge of the transaction.

The debt, due in December 2017, will pay interest at 6 percentage points to 6.25 percentage points more than the London interbank offered rate, said the person, who asked not to be identified because the terms are private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.

Sabre is proposing to sell the loan at 99 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.

Lenders are being offered one-year soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year, said the person.

Bank of America Corp., Deutsche Bank AG, Goldman Sachs Group Inc., Morgan Stanley, Barclays Plc, Natixis and Mizuho Corporate Bank Ltd. are arranging the financing and asking lenders to respond by Aug. 9, according to the person.

Silver Lake and TPG purchased the Southlake, Texas-based company in April 2007 for about $5 billion, according to data compiled by Bloomberg.

Pam Wong, a spokeswoman for Sabre, and Owen Blicksilver, a spokesman for TPG, declined to comment.

Covenant-lite debt doesn’t carry typical lender protection such as financial-maintenance requirements.

To contact the reporter on this story: Michael Amato in New York at mamato3@bloomberg.net

To contact the editor responsible for this story: Chapin Wright at cwright4@bloomberg.net


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