By Will Feuer


Shares of Sabre dropped after the booking-software supplier to airlines said it plans to restructure some of its debt and warned that participating debt holders could seek to hedge their bets on the company, weighing on the stock's price.

The shares fell more than 23% to $2 in premarket trading. Through Friday, shares were down almost 51% from a year ago.

The company said it had reached a privately negotiated exchange agreement with certain debt holders to exchange $150 million worth of outstanding 4% exchangeable senior notes due 2025 for $150 million of new exchangeable senior notes due 2026 and about $32.6 million in cash.

In connection with the exchange, Sabre said it expects some of the participating investors to seek to sell some shares of the company or enter into various derivative positions to hedge their exchangeable notes. Sabre warned that could weigh on the company's stock price.


Write to Will Feuer at Will.Feuer@wsj.com


(END) Dow Jones Newswires

03-04-24 0932ET