S&P rates TCH-2 loans B-, CCC

Standard & Poor's said it assigned a B- corporate credit rating to TCH-2 Holdings LLC, the holding company created to acquire TravelClick Inc.

The outlook is stable.

The agency also said it assigned a B- rating to the company's proposed $385 million senior secured first-lien term loan due 2021 and $30 million revolving credit facility due 2019.

S&P also said it assigned a CCC rating to the company's proposed $175 million second-lien term loan due 2021 with a recovery rating of 6, indicating 0% to 10% expected default recovery.

The agency said it will withdraw the ratings on TravelClick and its debt following the close of the transaction.

The ratings reflect the company's highly leveraged financial risk profile with pro forma leverage expected to decline to about 9x in 2014, treating capitalized software development as an operating expense, S&P said.

The ratings also consider the company's weak business risk profile given its modest scale and concentrated exposure to the lodging industry, the agency said.

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