Moody’s gives TVL Finance notes B3

Moody's Investors Service said it assigned a B3 rating to the proposed £165 million senior secured floating-rate notes due 2023 to be issued by TVL Finance plc, a wholly owned, indirect subsidiary of Thame and London Ltd. (Travelodge Ltd.).

Travelodge's B3 corporate family rating and B3-PD probability of default rating are unchanged. Also unchanged is the Ba3 rating of the super senior revolving credit facility and letter-of-credit facility issued by Full Moon Holdco 7 Ltd., a wholly owned, indirect subsidiary of Thame and London.

The outlook is stable.

Travelodge plans to use the proceeds from the proposed issuance to refinance its outstanding £100 million floating-rate notes and partially refinance its existing £290 million fixed-rate notes, as well as a portion (up to £35 million) of the shareholder loan, which Moody's views as equity.

Moody’s said the B3 note rating, which is in line with the company's B3 corporate family rating, reflects the asset light nature of the business and the fact that together, the floating- and fixed-rate notes, which are pari passu with each other, comprise the majority of funded debt.

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