Moody’s rates Casablanca loans B2, Caa2

Moody's Investors Service said it assigned a corporate family rating of B3 and probability of default rating of B3-PD to Casablanca International Holdings Ltd., which does business as Apple Leisure Group.

The agency also said it assigned a B2 (LGD 3) rating to Casablanca US Holdings Inc.'s $125 million backed senior secured first-lien revolving credit facility due in 2022, B2 (LGD 3) rating on its $600 million backed senior secured first-lien term loan and Caa2 (LGD 5) rating on its $225 million backed senior secured second-lien term loan.

The outlook is stable.

Casablanca International is a newly created company formed in connection with the acquisition of the operating subsidiaries of Apple Leisure Group by Kohlberg Kravis Roberts & Co. LP and KSL Capital Partners IV, LP, along with certain other investors, Moody’s explained.

ALG BV is the intermediate parent company of all of the operating subsidiaries of Apple Leisure Group, except Unlimited Vacation Club, the agency said.

At the time of the closing of the acquisition, the bank credit facilities at ALG will be repaid in full and the ratings associated with those facilities will be withdrawn, Moody’s noted.

The ratings reflect the very high debt levels associated with its acquisition, the agency said.

Following the acquisition, Apple Leisure Group will have $825 million of funded debt, which results in very high leverage, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.