Moody’s rates Hotelbeds loans B2

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to HNVR Midco Ltd. (Hotelbeds).

The agency also assigned B2 ratings to the outstanding €1,008,000,000 senior secured term loans B and C due 2023, the new €400 million senior secured term loan add-on due 2025 and the €247.5 million senior secured revolving credit facility due 2022, borrowed by HNVR Holdco Ltd.

The outlook is negative.

The new term loan add-on facility is to be issued to part finance a dividend to shareholders of €490 million, with the balance to be funded by surplus cash.

The agency said the corporate family rating reflects the company's leading market position in a fragmented market, high level of diversity of customers, hotel suppliers, and source and destination geographies and track record of growth and market share gains.

Moody’s said the rating also reflects high leverage of 6.2x at December 2018 (Moody's-adjusted), pro forma for the transaction, expected to reduce to around 5.5x in the next six to 12 months.

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