Bulletin: Sabre Industries Inc.?s First-Lien Add-On To Pay Off Second-Lien Loan Is Leverage Neutral

ENGLEWOOD (S&P Global Ratings) May 28, 2024--S&P Global Ratings today said that Sabre Industries Inc.'s proposed add-on to its first-lien loan is debt and leverage neutral. The company intends to use these proceeds to fully pay off its second-lien loan. We continue to expect Sabre's adjusted leverage to be about 6.5x-7x over the next 12 months. Nonetheless, we expect this transaction to lower interest costs and potentially improve adjusted EBITDA interest coverage and free cash generation. As such, our 'B-' issuer credit ratings remain unchanged. Our issue-level rating on Sabre's $1.026 billion outstanding first-lien term loan due in 2028 is 'B-'. The '3' recovery rating indicates our expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a

...ENGLEWOOD (S&P Global Ratings) May 28, 2024--S&P Global Ratings today said that Sabre Industries Inc.'s proposed add-on to its first-lien loan is debt and leverage neutral. The company intends to use these proceeds to fully pay off its second-lien loan. We continue to expect Sabre's adjusted leverage to be about 6.5x-7x over the next 12 months. Nonetheless, we expect this transaction to lower interest costs and potentially improve adjusted EBITDA interest coverage and free cash generation. As such, our 'B-' issuer credit ratings remain unchanged. Our issue-level rating on Sabre's $1.026 billion outstanding first-lien term loan due in 2028 is 'B-'. The '3' recovery rating indicates our expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default. Our 'B-' issue-level rating and '3' recovery rating on the company's $150 million cash flow revolver due in 2026 is unchanged. For more information, see our full analysis of Sabre, published May 26, 2023....

Bulletin