S&P gives Travel + Leisure loan BB-

S&P said it gave BB- and 4 recovery ratings to Travel + Leisure Co.'s planned incremental senior secured term loan B due 2029. The 4 recovery rating reflects an average (30%-50%; rounded estimate: 45%) recovery for lenders in the event of a default. The agency said it assumes the loan will be for $300 million.

The ratings are the same as S&P’s on T+L’s other secured loans and notes.

T+L plans to use the proceeds, a partial revolver draw, and cash balances to repay all of the $400 million 3.9% secured notes due March 2023.

“We view this transaction to be about leverage-neutral and in line with our published base-case forecast on T+L,” S&P said in a press release.

The outlook is stable.

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