Sabre Corp (NASDAQ: SABR) a technology provider for the hospitality industry, has released a new method to enable airlines to create a more holistic and accurate network. The company also recently announced the refinancing of revolving credit.
Enabling airline partners: Sabre Corp released a white paper outlining the new method to help its airline partners create more holistic and accurate network plans. As a result, the airline industry’s focuses shifted from short-term planning to more long-term sustainability and recovery. Per Sabre’s whitepaper “The Art & Science of Airline Network Planning to Ramp up for Recovery”, the airline industry has started focusing on long-term planning and staying away from the short-term focus that was of key importance during the pandemic.
As per the company, the latter half of 2021 is the time to relook our focus from crisis mode (pandemic) on the immediate gain to taking a more holistic and strategic view, analyze the market opportunities and fleet adjustments for the upcoming seasons and the coming years. Shifting from the short-term focus to the long-term vision isn’t easy. However, Sabre is developing a robust new airline network, methodologies discussed in the whitepaper.
Refinancing of Revolving Credit: Sabre announced a refinancing of a part of its indebtedness, including the repayment in full of its Term Loan B facility and its Revolving Credit Loan facility. As a result, of the refinancing, Sabre has not incurred any additional indebtedness. In addition, refinancing has significantly improved the company’s debt profile by amending the financial performance covenant. The new covenant removed the minimum liquidity requirement, leverage ratio maintenance requirement, and various other limitations.
The new facility is expected to mature on December 17, 2027, and offer the company to prepay the new refinance credit facility post-December 17, 2021. In addition, on July 2, 2021, in anticipation of the revolver repayment and termination of the revolving commitments, the company entered into a fresh $20 million LC (Letter of Credit) facility, which is secured by a cash collateral deposit.