S&P rates SeaWorld loan BB

Standard & Poor's said it affirmed its BB- corporate credit rating on SeaWorld Parks & Entertainment Inc.

The outlook is negative.

At the same time, the agency assigned its BB issue-level and 2 recovery ratings to the company's proposed $280 million term loan B-3 due 2020. The 2 recovery rating indicates an expectation for substantial (70%-90%; lower half of the range) recovery for lenders in the event of a payment default.

Additionally, S&P affirmed its BB issue-level rating on the company's existing senior secured credit facility, consisting of a $192.5 million revolver due 2018 and $1.35 billion term loan B-2 due 2020. The recovery rating on the facility remains 2, indicating an expectation for substantial (70%-90%; lower half of the range) recovery for lenders in the event of a payment default. The additional senior secured borrowing reduced recovery prospects to the lower half of the 2 recovery rating range.

SeaWorld plans to raise the additional $280 million term loan under its existing senior secured credit facility. This additional debt will have the same 2020 maturity as the existing term loan B-2.

SeaWorld will use the proceeds to repay its $260 million senior unsecured notes, to pay a call premium related to the notes and for transaction fees and expenses.

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