S&P rates Travel Leaders loan B+

S&P said it affirmed its B+ corporate credit rating on Travel Leaders Group LLC. The outlook is stable.

At the same time, S&P assigned a B+ issue-level rating and 3 recovery rating to the company’s proposed $534 million senior secured term loan due in 2024.

S&P also affirmed its B+ issue-level rating and 3 recovery rating on its existing $25 million revolver due in 2022.

The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery for lenders in the event of a payment default.

“We expect the company to use the proceeds from the proposed term loan to refinance its $434 million term loan, to partially fund its mergers with Altour and Travel Management Partners (TMP), and for transaction fees and expenses,” S&P said in a news release.

S&P said the corporate credit rating affirmation reflects a modest increase in leverage as a result of the proposed additional term loan borrowings and planned mergers, partially offset by the EBITDA contribution from the strategic agreement, resulting in a minimal overall impact to leverage metrics.

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