S&P rates Sandy, loans B

S&P said it gave B ratings to Sandy Holdco BV and the senior secured credit facilities to be issued by Sandy Bidco BV. Sandy is the ultimate parent of Roompot.

Roompot plans to acquire Landal for €1.2 billion. The acquisition of Landal and refinancing of Roompot's operating company (OpCo) and property company (PropCo) debt will be financed by a new €1.05 billion term loan B and a €671 million equity investment from shareholder Kohlberg Kravis Roberts & Co. The group also plans to issue a new €125 million revolver, which will be undrawn at closing.

“This acquisition should enhance Roompot's competitive position in the Dutch market. In our view the acquisition of Landal will increase Roompot's scale, diversification, and positioning in the niche but resilient Dutch holiday park market. We value the group's well invested asset base in attractive locations with high barriers to entry and significant real estate ownership valued at about €1.3 billion. That said, the business model remains highly seasonal with about 50% of EBITDA generated in the summer and while improving, operating leverage is still high with about 70% of revenue generated from owned or leased assets,” S&P said in a press release.

The outlook is stable.

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