Moody's: SeaWorld loan at Ba2

Moody's Investors Service said it assigned a Ba2 (LGD3, 37%) rating to SeaWorld Parks & Entertainment, Inc.'s proposed $125 million senior secured term loan A and affirmed the Ba2 ratings on the existing senior secured revolver and downsized term loan B in conjunction with a repricing and the year maturity extension on the facilities.

SeaWorld's Ba3 corporate family rating, Ba3 probability of default rating and stable outlook were not affected.

The proceeds from the term loan A will be used to pay down the term loan B and fund transaction fees and expenses.

The ratings reflect the strong brands and consumer appeal of the company's portfolio of 10 regional and destination amusement parks, the agency said.

The ratings consider SeaWorld's business risk and competitive position compared with others within the industry, capital structure and financial risk, projected performance, cyclical discretionary consumer spending, high debt-to-EBITDA and management's track record and tolerance for risk, Moody's said.

The debt-to-EBITDA ratio was 5.1 times as of Sept. 30.

© 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.