Moody's gives WorldStrides B3

Moody's Investors Service said it assigned Lakeland Holdings, LLC (WorldStrides) a corporate family rating at B3 and a probability of default rating of B3-PD.

Concurrently, Moody's upgraded the rating assigned to Lakeland Tours, LLC's $211 million, as of Dec. 31, 2021, senior secured third take-back term loan due 2025 to B3 from Caa2. Lakeland Tours is a wholly owned subsidiary of WorldStrides.

The Caa2 CFR and Caa2-PD PDR assigned to Lakeland and the B1 rating assigned to the senior secured bank credit facility (priority exit) and the B2 rating assigned to the senior secured bank credit facility were withdrawn.

“The effective upgrade of the CFR to B3 from Caa2 reflects Moody's anticipation of an ongoing business recovery and the benefits of the refinancing. The new debt capital structure is more sustainable in Moody's view since there is less payment-in-kind debt and fewer tranches. The upgrades are also based on the recovery in earnings and demand for educational tours in FY 2022, which Moody's expects will continue for the next few years,” the agency said in a press release.

The outlook remains stable.

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