S&P rates Lindblad notes B

S&P said it rated Lindblad Expeditions Holdings Inc.'s upcoming offer of $275 million of senior secured notes due 2028 B with 2 recovery ratings. The 2 recovery rating indicates substantial (70%-90%; rounded estimate: 80%) recovery in default.

Concurrently, the agency said it lowered the recovery rating on the outstanding $360 million of senior secured notes to 4 from 3. The 4 recovery rating indicates average (30%-50%; rounded estimate: 45%) recovery in default.

“Recovery prospects for existing secured noteholders is modestly lower due to the proposed transaction. This is because it increases the amount of debt collateralized by Lindblad's polar ice class vessels (National Geographic Endurance and National Geographic Resolution), which eliminates residual value previously allocated toward the recovery of Lindblad's existing senior secured revolver and notes,” S&P said in a press release.

The B- issue-level rating on the existing notes and the B- issuer credit rating on Lindblad are unchanged.

Lindblad plans to use the proceeds to repay its export credit agency facility debt that will become due in January 2031 and 2032 and add cash to the balance sheet.

The outlook is stable.

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