Sabre Corporation announced that, as part of its ongoing proactive response to the impact on its business of the COVID-19 pandemic, it has completed the readjustment of its capital structure to enhance cash on hand and extend the maturity profile of its indebtedness.
As the final step in this transaction, Sabre completed supplemental closings today in respect of its previously announced registered offerings of common stock and mandatory convertible preferred stock, issuing additional shares pursuant to options that were exercised by the underwriters of those offerings.
After taking today’s supplemental closings into account, Sabre has generated a total of approximately $598 million in proceeds net of commissions from its recent equity offerings, increasing Sabre’s cash on hand. Concurrently, as previously announced, Sabre has extended the scheduled maturity of a large portion of its indebtedness through (1) the issuance of $850 million aggregate principal amount of new senior secured notes due 2025 and the application of the resulting proceeds to repay earlier maturing indebtedness and (2) a maturity extension in respect to a portion of Sabre’s existing bank facility.
Read More: US Lawmakers Appoints a Senate to analyze the Negative Impact of AI
“As we continue to navigate through these unprecedented times in our industry, it is critical that our team remains focused on controlling what we can control and seeks to best position Sabre for when travel resumes,” said Sean Menke, president and CEO of Sabre. “To that end, we’ve taken additional steps to enhance Sabre’s liquidity position, extend our liquidity runway and push out the majority of our principal debt maturities to 2024 or later. When combined with the cost-saving initiatives we’ve already put in place and the strategic actions we’ve taken over the last several years to transform our business, we believe Sabre is poised to profitably grow its business, both in the recovery phase of this pandemic and long term.”
