This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Travelocity Owner Sabre Holdings Returns to Wall Street After IPO

NEW YORK (TheStreet) -- Though Sabre Holdings (SABR) priced its initial public offering below what it expected, that's not worrying CFO Rick Simonson, who's looking to the long haul for the technology provider to the global travel and tourism industry.

In an interview with TheStreet, Simonson said that despite the broader market's volatility, he and Texas-based Sabre Holdings were pleased with the initial public offering, which priced 39.2 million shares at $16 a share. That's down from the initial range the company provided in its S-1 filing, when it expected to sell 44.7 million shares at a range of $18 to $20.

Morgan Stanley, Goldman Sachs, BofA Merrill Lynch and Deutsche Bank acted as joint book runners for the offering.

"There's strong demand for the IPO," Simonson said over the phone. "I look to the long haul, and we're looking to build value from here."

Sabre, best known for its Travelocity travel site, is one of the leading technology companies to the whole travel industry, being in the travel network business. "We sit between suppliers and the suppliers of travel. Our marketplace is bigger than what goes between Amazon (AMZN) and eBay (EBAY). We have a leading position there -- we love that business and our position in it," Simonson stated.

Aside from the travel network business, Sabre has a software-as-a-solutions (SaaS) business that's growing at a double digit percentage, which services all the big travel companies, including (PCLN), Expedia (EXPE) and others, to name a few. "We're one of the biggest SaaS companies out there, number two as measured by EBITDA to (CRM). We've got a good understanding of the end consumers bc we service all the big travel players."

Sabre is making its return to the public markets, after having been taken private by TPG Capital and Silver Lake Partners in 2007 for about $5 billion, including debt. Simonson noted that the company, which still has about $3.6 billion in gross debt, will use the net proceeds from the offering to help pay down the debt. "We had a 4.4 times leverage ratio at the end of the last year. With the IPO, that will come down to 3.5 times leverage," Simonson said.

Somewhat unusual for a tech company going public, Sabre is going to pay a 9-cent per share dividend, a fact Simonson attests to the company's strong balance sheet. "We can start life with a dividend, a healthy dividend because we have a balanced capital structure," the CFO said.

In addition to going public, Sabre announced three new products -- Customer Experience Manager, Guest Connect Upsell and TripCase Corporate -- "to help travel companies design and offer a more personalized shopping and travel experiences for travelers."

-- Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SABR $23.88 0.89%
AAPL $123.25 -0.80%
FB $83.30 0.35%
GOOG $548.34 -1.23%
TSLA $185.00 -2.84%


DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs