S&P: Travel Leaders loan B+

S&P said it affirmed the B+ corporate credit rating on Travel Leaders Group LLC.

The outlook is stable.

The agency also said it assigned a B+ rating and 3 recovery rating to the company's proposed senior secured credit facilities consisting of a $25 million revolver due 2022 and $400 million term loan due 2024.

The 3 recovery rating indicates 50% to 70% expected default recovery.

S&P said it will withdraw the ratings on the company's current debt when it is redeemed.

The ratings reflect the company’s sufficient leverage capacity to accommodate the leveraging impact of the proposed financing and planned acquisitions, the agency said.

The ratings also consider an expectation for continued modest growth in travel volumes and commission revenue, which will enable the company to maintain leverage of less than 5x, S&P said.

Through 2018, the agency said it expects modest growth in high-end corporate and luxury leisure travel and air- and hotel-based commission revenue, as well as moderate growth in commission revenue in the company’s indirect channels.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.