S&P rates Voyage Care notes B+

S&P said it assigned a B+ rating and 2 recovery rating to the proposed £205 million senior secured notes to be issued by Voyage Care Bondco plc.

The 2 recovery rating reflects an expectation 70% to 90% expected default recovery.

Voyage Care will on-lend the proceeds to its parent, Voyage BidCo Ltd., an operator of specialist care homes in the United Kingdom, S&P said.

The agency also said it assigned a CCC+ rating and 6 recovery rating to Voyage Care's proposed £40 million senior secured second-lien notes. The 6 recovery rating reflects 0 to 10% expected default recovery.

The ratings reflect the subordinated nature of the notes, S&P said.

The agency also said it assigned a BB rating and 1+ recovery rating to Voyage Care's proposed £45 million super senior revolving facility. The 1+ recovery rating indicates 100% expected default recovery.

The company will use the proceeds of its proposed senior secured and second-lien notes to refinance existing debt, S&P said.

The security package provided to senior secured noteholders is shared with revolving credit facility lenders and comprises share pledges and substantially all tangible and intangible assets of the issuer and guarantors, including trade receivables, the agency said.

Therefore, the agency said it views the collateral as a comprehensive security package.

The proposed senior secured notes and revolver will be guaranteed on a senior basis by Voyage Bidco Ltd., the parent guarantor, and by subsidiaries representing at least 80% of group EBITDA before exceptional items, S&P said.

Voyage Bidco and these subsidiaries also will guarantee the second-lien notes, but on a subordinated basis, the agency said.

The B corporate credit rating on Voyage Bidco is based on an assessment of the company's highly leveraged financial risk profile, S&P said.

It also reflects the cash-generative nature of its business as an operator of specialist care homes in the United Kingdom, the agency said, and the added benefit of its freehold ownership of most of its properties.

The outlook is stable.

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