S&P puts Travelport on positive watch, rates loan B-

Standard & Poor’s said it assigned its CCC+ long-term corporate credit rating to Travelport Worldwide Ltd. and its new wholly owned financing entity, Travelport Finance (Luxembourg) Sarl.

S&P also equalized the corporate credit rating on intermediate holding company Travelport Holdings Ltd. and its primary operating subsidiary Travelport LLC with that on Travelport, the holding company for the group.

At the same time, S&P placed all abovementioned ratings on CreditWatch with positive implications.

In addition, S&P assigned B- issue ratings to the proposed $2.3 billion senior secured term loan and the proposed $100 million revolving credit facility to be issued by Travelport Finance. The recovery rating on these instruments is 3, indicating an expectation of meaningful (50%-70%) recovery in the event of a payment default.

The CreditWatch positive placement primarily reflects Travelport’s plans to refinance its capital structure in the short term, which is contingent on the company issuing a new $2.3 billion senior secured first-lien term loan. The placement also reflects an expectation that Travelport will repay its remaining debt with the proceeds of new senior unsecured debt.

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