Saber Corporation SABR recently announced that it has refinanced a certain portion of its existing B term loans and revolving loans.
Under the terms, the company’s wholly-owned subsidiary, Saber GLBL, took out Loan B totaling $ 1.048 billion under an existing predominantly secured loan agreement. The newly refinanced term loans are represented by two tranches: a $ 404 million B-1 term loan and a $ 644 million B-2 term loan.
The company intends to use the proceeds to fully repay its existing Maturity B loans, almost $ 633.8 million, and $ 400 million revolving loans.
The new lines of credit mature on December 17, 2027. In addition, it allows prepayments on these loans after December 17, 2021, or with a premium of 101 before that date.
Saber has a large amount of debt on its balance sheet, which remains a risk for the company. As of March 31, 2021, Saber had a long-term debt of $ 4.71 billion, compared with cash and cash equivalents of $ 1.28 billion. As a result, the company is left with a significant amount of net debt of $ 3.43 billion.
He showed that the recent refinancing will not result in any additional debt beyond the amounts incurred on interest, fees and charges in relation to loans.
Saber Corporation Course
Saber Corporation price | Quote from Saber Corporation
The latest move reflects the company’s ongoing focus on improving its financial flexibility and debt repayment profile to stay afloat amid the COVID-19 pandemic.
Saber also announced refinancing at the end of December. These were loans with maturity A and the redemption of the senior secured bonds of the Saber GLBL. Under the terms, Saber GLBL borrowed a $ 637 million “B” loan under an existing senior loan security agreement.
The company intended to use the proceeds from the aforementioned refinancing to fully repay its existing term loans (approximately US $ 134 million) and to repurchase the outstanding Saber GLBL senior secured bonds in the amount of US $ 500 million worth 5.250% due November 2023.
In September 2020, Saber adjusted its capital structure to increase cash on hand and broaden its debt maturity profile. The company received approximately $ 598 million in proceeds (net of commissions) from the placement of shares, thereby increasing the cash register.
It extended the planned maturity of the main part of its debt by issuing new senior secured bonds totaling US $ 850 million, maturing in 2025. The company also extended the maturity of a portion of its existing bank line.
However, the uncertainty surrounding the pandemic and restrictions in some countries remains a major concern for the company. Global measures to curb the spread of the coronavirus have hit the travel industry hard, damaging Saber travel bookings, financial health and operating results.
Zacks rating and stocks to consider
Saber is currently Zacks # 5 (Strong Sales).
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