Before last Wednesday's bank meeting, Deutsche Bank and Merrill Lynch reworked the terms backing the leveraged buyout of Sabre Holdings. Four hundred million dollars were removed from the second lien, with $315 million shifted into the first lien and $85 million moved into a headquarters mortgage loan. The mortgage loan is not being marketed to typical collateralized loan obligation investors.
The financing now consists of a six-year, $500 million revolver, a seven-and-a-half-year, $2.715 billion first lien and an eight-year, $300 million second lien. Pricing is LIBOR plus 2 1/4% on the first lien and LIBOR plus 5% on the second.
Silver Lake Partners and Texas Pacific Group are taking the Southlake, Texas, company private for approximately $5 billion, including the assumption of about $550 million in debt. Sabre is split into Travelocity, Sabre Travel Network and Sabre Airline Solutions. A TPG spokesman declined comment. A call to a spokesman for Silver Lake and Karen Fugate, v.p. of investor relations at Sabre, was not immediately returned.