Sabre Corporation (NASDAQ: SABR) announced the issuance of $150 million in 7.00% exchangeable senior notes due 2031 through its subsidiary Sabre GLBL Inc. The notes are guaranteed by Sabre and Sabre Holdings Corporation.

The company plans to use $100 million of the proceeds to repurchase existing 7.32% exchangeable senior notes due 2026 at par plus accrued interest. The remaining proceeds will retire additional existing notes, resulting in no net increase in debt.

The new notes will mature May 15, 2031, with interest paid semi-annually starting November 15, 2026. Noteholders can exchange notes for Sabre common stock at an initial rate of 447.2272 shares per $1,000 principal amount, representing an exchange price of approximately $2.24 per share. This price reflects a 30% premium over the May 13, 2026 closing price of $1.72 per share.

Exchange rights are limited before November 15, 2030, but become available at any time thereafter until maturity. Sabre GLBL can choose to settle exchanges in cash, stock, or a combination of both.

The company may redeem the notes starting May 21, 2029, if the stock price reaches at least 130% of the exchange price for a specified period. Noteholders can require repurchase on May 15, 2029, or upon certain fundamental changes at 100% of principal plus accrued interest.

The transaction is expected to settle May 18, 2026, subject to closing conditions. The notes were sold to qualified institutional buyers and institutional accredited investors under Rule 144A.