Sabre turned down a financing proposal from existing term lenders and went ahead with an
amended new-money offer committed to by an investor group led by Centerbridge Partners, according to sources.
The Centerbridge-led quartet upsized its commitment by $35 million, lowered the interest rate on the new loan and tightened prepayment requirements in comparison with a
previous offer. The new financing would potentially
dilute existing loan’s claim on domestic assets because of PIK interest payments and a make whole provision. It is also senior to the existing loan regarding nonguarantor foreign subsidiaries.
Following the
At Home transaction, Sabre is the most recent issuer to secure new financing with a
“double-dip” structure that includes collateral in the form of a guarantee from non-loan entities.
Shutterfly also executed a deal where it moved some IP to nonguarantor subsidiaries to secure new money and facilitate a debt exchange.
The early tender date for Sabre’s offer to repurchase its secured notes is today.
Sabre, Centerbridge and Paul Hastings as counsel to an ad hoc group of term lenders did not respond to requests for comment.
--Harvard Zhang