S&P trims Travelport

S&P said it downgraded its ratings on Toro Private Holdings I, Ltd. (Travelport) and its first-lien debt facilities to CCC from B- and B, respectively. The facilities consist of $2.8 billion in term loans due 2026 and a $150 million revolving credit facility due 2024

The agency also lowered to CC from CCC the issue rating on the $500 million second-lien term loans due May 2027.

“We lowered the rating because we see a high risk that a distressed debt restructuring could occur over the next 12 months,” S&P said in a press release.

The company transferred more than $1 billion in intellectual property rights to a new unrestricted subsidiary, Travelport Technologies LLC. It used it as collateral to raise $500 million of new secured loans from its financial sponsors. The sponsors also offered an added $500 million of financing capacity, the agency said.

“As reported in LCD News, Travelport’s lenders have declared the company in default for stripping away the collateral that secured its existing loans,” S&P said.

The outlook is negative.

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