E-mail us: service@prospectnews.com Or call: 212 374 2800
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets
Green Finance - High Yield - Investment Grade - Liability Management
Preferreds - Private Placements - Structured Products
 
Published on 1/24/2017 in the Prospect News Bank Loan Daily.

S&P rates Richmond UK loan B+

S&P said it assigned a preliminary B corporate credit rating to Richmond UK Holdco Ltd.

The agency also said it assigned a B+ proposed issue rating and 2 recovery rating to the company's proposed senior secured credit facility, which consists of a £100 million revolving credit facility due 2023 and £575 million term loan due 2024.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The outlook is stable.

Richmond UK Bidco is one of the co-borrowers of the senior credit facility, S&P said.

The agency said it will withdraw the issuer and issue ratings on Parkdean Resorts Midco Ltd., which is the entity being acquired, upon completion of the acquisition.

This is expected at the end of the first quarter of 2017.

The ratings on Richmond UK Holdco, the indirect parent company of Parkdean Resorts, reflects the company's high adjusted debt leverage and modestly diversified and seasonal business, which offers limited brand awareness in the context of the broader leisure space, S&P said.

The new capital structure includes a £100 million revolving credit facility, £575 million first-lien facility and £150 million second-lien facility, S&P explained.

The financing also includes £150 million from a ground rent transaction that is expected to close at the same time as the acquisition and includes the sale and leaseback of 10 of the company's freehold properties, the agency said.

Richmond UK Holdco is being used as an investment vehicle to acquire Parkdean Resorts, S&P said.

The company is exposed to cyclical consumer discretionary spending, which could be threatened by Brexit concerns, the agency said.

But Parkdean has a track record of revenue resilience and stable operating performance, even in a recessionary environment, S&P said.


© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.