S&P assigns B to eDreams Odigeo bonds

S&P said it assigned its B issue rating and 4 recovery rating to the proposed €425 million senior secured bonds of eDreams Odigeo SA (B/stable/--). The recovery rating of 4 indicates an expectation of average recovery (30%-50%; rounded estimate 35%) for lenders in the event of a payment default.

“The transaction will have a largely neutral impact on eDreams' leverage and therefore has no effect on our ratings and outlook on the company,” S&P said in a news release.

The proposed bonds will refinance eDreams' current capital structure while reducing interest costs and extending debt maturities.

The new capital structure will comprise fixed-rate senior secured notes and an amended super senior revolving credit facility.

The BB- issue and 1 recovery ratings on the upsized and amended €175 million super senior revolver are unchanged. The recovery rating of 1 indicates an expectation of very high recovery (90%-100%; rounded estimate: 95%) in the event of a default.

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