Moody’s: WorldStrides unaffected by acquisition

Moody's Investors Service said the proposed acquisition of Envision EMI, LLC by Lakeland Tours, LLC (WorldStrides) is a credit negative development for WorldStrides, but it does not affect the company's B2 corporate family rating or stable outlook.

All other ratings for the company, including the B2-PD probability of default rating and the B1 senior secured first-lien term loan and revolving credit facility ratings, are unchanged.

WorldStrides intends to use an $85 million incremental senior secured term loan, as well as cash, to fund the proposed transaction.

“Though Envision is expected to complement WorldStrides' existing program offerings and will provide future revenue and cost synergy opportunities, this development has moderately negative implications for the company's credit profile as it results in an increase in leverage, up to about 8x, based on preliminary results from June 2018,” Moody’s said in a news release.

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