S&P rates Travel Leaders loan BB-

Standard & Poor's said it assigned a corporate credit rating of B+ to Travel Leaders Group LLC.

The outlook is positive.

S&P also said it assigned a BB- rating to its proposed $185 million senior credit facility with a recovery rating of 2, indicating 70% to 90% expected default recovery. The credit facility consists of a $15 million revolver due 2018 and a $170 million term loan due 2019.

The proceeds from the new term loan will be used to recapitalize the company's ownership structure, the agency said.

Following the completion of the transaction, management will wholly own the company, fund a distribution to shareholders of $5.8 million and refinance $69 million of existing debt.

The ratings reflect the company's aggressive financial risk profile and weak business risk profile, the agency said.

The ratings also consider the company's volatile consumer and corporate discretionary travel spending, limited geographic and business diversity and significant competition in the highly fragmented travel leisure industry, S&P said.

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