Bloomberg News

inc loan

February 01, 2013

Sabre Inc., the travel-technology provider owned by TPG Capital and Silver Lake Partners LP, set the rate it will pay on $2.55 billion of loans it’s seeking to refinance debt, according to a person with knowledge of the transaction.

A $1.95 billion six-year term loan B will pay interest at 3.75 percentage points more than the London interbank offered rate, said the person, who asked not to be identified because the information is 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 99.5 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, the person said.

A $250 million term loan C maturing in five years, will pay interest at 3 percentage points more than Libor, with a 1 percent floor and will be sold at 99.75 cents, according to the person.

Term loan C lenders will be offered six months of 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 six months.

Bank of America Corp. is arranging the financing which also includes a $352 million, five-year revolving line of credit that will pay 3.75 percentage points more than Libor, the person said.

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, didn’t immediately respond to an e-mail seeking comment.

To contact the reporter on this story: Michael Amato in New York at Mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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