S&P upgrades LendingTree

S&P said it raised LendingTree Inc.’s issuer credit rating to CCC+ from SD, selective default. The B issue-level ratings on LendingTree's $200 million senior secured revolving credit facility due 2026 and $250 million senior secured term loan due 2028 are unchanged. The 1 recovery ratings remain unchanged.

The agency said it completed its review of LendingTree following its below-par buybacks of $100 million of principal of its $384 million of unsecured convertible notes due 2025.

“The CCC+ rating reflects our belief that LendingTree depends on favorable economic and operating conditions to refinance its $284 million (outstanding) senior unsecured convertible notes due in July 2025. We expect the company's leverage to be about 7x and free operating cash flow (FOCF) to debt to be about 9% in 2024 following its recent $100 million below-par debt repurchase and $290 million of total debt repurchases year to date. This compares favorably with our 2023 expectation of leverage of about 8x and FOCF to debt of 7%,” S&P said in a press release.

The outlook is negative.

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