S&P: World Triathlon loan B

Standard & Poor’s said it assigned a B corporate credit rating to World Endurance Holdings Inc.

The outlook is stable.

The agency said it assigned a B rating to the company’s proposed senior secured credit facility consisting of a $20 million revolver due 2019 and a $220 million term loan due 2021 with a recovery rating of 3, indicating 50% to 70% expected default recovery.

The borrower under the proposed credit facility will be World Triathlon Corp., which is a wholly owned domestic subsidiary of World Endurance.

The proceeds will be used by the company to fund a dividend to its private equity owner Providence Equity Partners and repay existing term loan debt, S&P said.

The ratings reflect the company’s narrow scope as an operator of endurance triathlon events, a somewhat limited customer base and high degrees of competition from a large number of substitutes for participants’ discretionary income and time, the agency said.

These factors are only partially offset by the strength of its Ironman brand and relatively predictable revenue base, S&P said.

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