S&P cuts Lindblad loan, rates revolver BB

Standard & Poor's said it assigned its BB issue-level and 2 recovery ratings to Lindblad Expeditions Holdings Inc.'s $45 million senior secured revolving credit facility due 2020.

The 2 recovery rating indicates an expectation for substantial recovery (70%-90%; upper half of the range) of principal for lenders in the event of a payment default.

At the same time, the agency lowered its issue-level rating on the company's $175 million senior secured term loan due 2021 to BB from BB+ and revised the recovery rating to 2 from 1. The 2 recovery rating indicates an expectation for substantial recovery (70%-90%; upper half of the range) of principal for lenders in the event of a payment default.

The revised recovery rating reflects the greater amount of secured debt outstanding at default under our simulated default scenario due to an assumed 85% draw on the company's revolver.

Lindblad Expeditions LLC and Lindblad Maritime Enterprises Ltd. are coborrowers of the senior secured revolver and term loan.

The BB- corporate credit rating and stable outlook are unchanged. S&P continues to expect adjusted debt to EBITDA to improve to the high-3 times area in 2016 from about 4 times in 2015, and adjusted funds from operations (FFO) to debt to remain at about 20%.

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