OREANDA-NEWS. S&P Global Ratings today assigned its 'BB-' issue-level rating and '3' recovery rating to Southlake, Texas-based travel technology companies Sabre Holdings Corp. and Sabre GLBL Inc.'s (collectively, Sabre) $1 billion senior secured credit facility, which consists of a $400 million senior secured revolving credit facility and a $600 million senior secured incremental term loan A due in 2021. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; upper half of the range) of principal in the event of a payment default.

The $400 million revolver replaces Sabre's existing $405 million revolving credit facilities. The companies used the proceeds from the $600 million incremental term loan A to repay $470 million revolving and term loan B debt. Sabre used the remaining proceeds to pay fees and increase its cash balance. The new senior secured credit facility will mature on July 18, 2021, subject to an earlier springing maturity of Nov. 19, 2018, if the term loan B hasn't been refinanced by Nov. 19, 2018.

Our 'BB-' corporate credit rating and stable rating outlook on Sabre are unchanged. As of March 31, 2016, the company's adjusted debt leverage was 3.9x, which is within our threshold of 3x-4x for the rating. We expect debt leverage to decline to the mid-3x area by the end of 2016 (absent any potential litigation settlement with US Airways Inc., which could increase leverage).