@1njs+15boHGTz ~ "Citation?" — Battle Cry of the Lazy {{You deserve that. If it (see below) was a Texas rattler you would have reached room temp in a few hours. Due diligence!}}
Summary: Plenty of highly liquid assets. Company can survive for 18 months with 0-bookings, no travel environment. If '0-bookings, no travel environment' happens, it would be a planet k–ler.
Again, Sabre is going to come out of this on top of their industry. Watch.
"We raised $1.1 billion from the issuance of senior secured and exchangeable notes. Final pricing was 9.25% on $775 million in senior secured notes due in 2025 and 4% on $345 million exchangeable notes also due in 2025. We although we were in compliance with our Q1 leverage ratio requirements as of March 31, 2020, we believe that a material travel event disruption has occurred. Therefore, we expect our leverage ratio covenant under our amended and restated credit agreement will be suspended. Current carrier capacity forecasts lead to our expectation that this suspension will remain for the balance of the year. Effective May 1, 2020, Sabre and Farelogix agreed to terminate the acquisition agreement. We recorded a termination fee of $46 million in the first quarter, $25 million of which is related to advances already paid and $21 million in aggregate termination fees that have already been paid in the second quarter of 2020. Taking a closer look at our liquidity position. We ended the first quarter with a cash balance of $684 million. We have a cash balance of approximately $1.7 billion pro forma for the following items: $1.1 billion raised in our recent notes offerings, less $30 million in refunds owed to airlines for Q1 cancellations; $52 million in incentive payments delayed from Q1 into Q2; $44 million in cancellation reserve; and the $21 million in termination fees paid to Farelogix in Q2.
We estimate we have total liquidity of approximately $1.5 billion after taking into account minimum cash to operate the business of $150 million. We estimate we have a monthly cash burn rate of approximately $80 million in a 0-bookings environment. This estimate is comprised of: $50 million revenue from the 15% of our revenue not tied to travel volumes; $80 million in fixed costs from our $1 billion in previously described annual fixed costs; $20 million in variable costs, reflecting a decline in Travel Network incentives and semi-variable technology hosting costs as well as the impact of cost savings initiatives; and $30 million in other cash expenditures, which is primarily interest, debt repayment and capex. This all results in our expectations for approximately 18 months of liquidity in a 0-bookings, no-travel environment. Given that we believe we have more than one and half years of liquidity, we do not expect to participate in the CARES Act loan program for the aviation industry. As a reminder, we withdrew the guidance provided on our February earnings call and are not issuing guidance at this time."
Source: https://www.fool.com/earnings/call-transcripts/2020/05/09/sabre-corp-sabr-q1-2020-earnings-call-transcript.aspx