Moody’s assigns B1 to Travel Leaders loans

Moody's Investors Service said it affirmed Travel Leaders Group LLC's B2 corporate family rating and B3-PD probability of default rating.

At the same time, the agency assigned a B1 rating to the company's proposed amended and extended senior secured credit facilities, consisting of an upsized $240 million term loan (including a $78.5 million add-on) due 2020 and a $15 million revolving credit facility due 2020.

The outlook is stable.

On March 27, Travel Leaders announced an amendment to the existing credit agreement, comprising an increase in the size of its term loan to $240 million from $161 million, an extension of the maturity dates on both the term loan and revolving credit facility to 2020 from 2018 and a revision of the financial maintenance covenants to accommodate the incremental debt.

Proceeds from the add-on, along with cash from the balance sheet, will be used to finance a $100 million distribution to the shareholders (primarily Certares Founders Holdings, LLC and management) as well as any related fees and expenses. The revolver will be undrawn at close.

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