Moody's lowers Travelport

Moody's Investors Service said it affirmed Toro Private Holdings II, Ltd.’s (Travelport) Caa2 corporate family rating and its Caa2-PD/LD (/LD appended) probability of default rating.

Concurrently, Moody's downgraded Travelport Finance (Luxembourg) Sarl's first-lien senior secured term loan due May 2026 to Caa3 from Caa2 and assigned a B3 rating to the new $1.63 billion priority first-lien senior secured term loan due February 2025. The outlook remains negative.

On Sept. 17, Travelport announced it had reached an agreement with lenders on the terms of a debt-exchange offer and issuance of priority debt.

“The limited default designation appended to Travelport's PDR reflects the loss for lenders because of the company's debt restructuring and the clear default avoidance, as evidenced in the net leverage covenant amendment and the potential use of PIK interest in the future to alleviate liquidity shortfalls. We view these elements as a distressed exchange which constitutes an event of default under Moody's definitions,” said Luigi Bucci, Moody's lead analyst for Travelport, in a news release.

© 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.