S&P assigns Worldspan loans B, CCC+

Standard & Poor's said it assigned ratings to Worldspan LP's (B/Watch developing) proposed $1 billion secured credit facility.

The revolver and first-lien term loan are rated B, the same as the corporate credit rating and are assigned a recovery rating of 2, indicating expectations of substantial recovery of principal in the event of a payment default, the agency said.

S&P added that the $750 million facility consists of a $50 million revolver due 2012 and a $700 million term loan due 2013.

The $250 million second-lien term loan that matures in 2014 is rated CCC+ and assigned a recovery rating of 5, the agency said, adding that proceeds from the proposed credit facility and a $250 million payment-in-kind loan from Travelport Inc. (B+/Watch negative) will be used to refinance the company's existing debt and pay its owners a dividend.

The agency said that the ratings on Worldspan reflect its weak financial profile and limited financial flexibility after several recapitalizations, in which debt was used to redeem preferred stock held by the company's owners and to pay them a dividend of $600 million.

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