Moody's assigns Lindblad note B3

Moody's Investors Service said it assigned a B3 rating to Lindblad Expeditions Holdings, Inc.'s new $275 million of five-year backed senior secured notes.

Moody's withdrew Lindblad Expeditions, LLC's B3 corporate family rating, B3-PD probability of default rating and SGL-3 speculative grade liquidity rating and concurrently assigned the same ratings to Lindblad Expeditions Holdings. Lindblad Expeditions, LLC's existing backed senior secured ratings were also affirmed at B3.

Linblad will use the proceeds to repay outstanding amounts under its export credit facilities related to two ships, pay fees and expenses and add some cash to the balance sheet.

“Moody's views the transaction positively as it replaces variable-rate debt with fixed-rate debt and eliminates quarterly amortization and financial maintenance covenants required by the export credit facilities. However, the company's ratings and stable outlook remain unchanged due to the company's high leverage and risks associated with the full ramp up of operations this summer. Moody's forecasts Lindblad's debt/EBITDA will approximate 8x at the end of 2023 before improving towards 6x at the end of 2024,” the agency said in a press release.

The outlook is stable.

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