S&P cuts Travelport

S&P said it lowered its ratings on Toro Private Holdings I Ltd. (Travelport) and its finance subsidiary Travelport Finance (Luxembourg) Sarl to D from CC. The agency also cut the priority-lien debt to D from CCC- and the junior priority-lien debt to D from CCC- and C, respectively.

On Wednesday, the company announced it completed its previously announced debt restructuring, which includes its equity holders and lenders investing $570 million in new equity financing.

“In our view, the debt-for-equity exchange and the changes to the terms of the priority-lien term loan both fall short of the original promise to the lenders. Because we do not consider that lenders have received adequate compensation for the changes, we view the debt restructuring as a general default. Therefore, we lowered our ratings on the company, as well as its priority-lien and junior priority-lien debt, to D,” S&P said in a press release.

The agency said it plans to reassess Travelport’s ratings after it has evaluated the new capital structure, cash flow profile, liquidity and business risk profile.

S&P noted, “The debt-for-equity exchange and debt paydown included in the transaction have significantly reduced Travelport's debt and cash interest costs.”

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