Is Sabre borrowing vast sums of money or repositioning debt for Chapter 11?
https://www.google.com/amp/s/finance.yahoo.com/amphtml/news/sabre-corporation-announces-offerings-senior-120900120.html
4 replies (most recent on top)
Ask a corp bankruptcy attorney. I don't believe you can PREPARE for bankruptcy. That's likely called "in contemplation of" or possibly a Fraudulent Transfer.
Better explanations in this thread.
Here @ead+14tDxRCd & here @hqj+14tDxRCd.
@gru+14tDxRCd
I think they are leaving their options open and positioning for the best deal they can get. The gov's strings and "bait" is an option but it comes with objectives that may differ from Mgmt's objectives. It also comes with the risk of public scrutiny in the news after its been consumed and even paid back. I'm sure you can name a couple of "gov takers" of money that happened in the last cycle.
I am not saying it will be a PR mess, but i am saying when taking public money you certainly leave that door open. Right now it seems like they are just positioning for the best deal. Which is what they should do.
Why not both?
It just means they are first trying their hand at private funding options before they go the gov route. It's certainly a large sum and they are offered in the mid 9percent range.