S&P ups B&B Hotels, rates loan B

S&P said it upgraded its ratings for B&B Hotels (Casper Topco) and its debt to B from B- and assigned a B rating to its planned €1.25 billion first-lien term loan.

“Despite €200 million added to financial debt from the proposed TLB, the impact on leverage is neutral, thanks to sizable EBITDA expansion over the past two years,” S&P said in a statement.

S&P said it forecasts the adjusted EBITDA figure to improve to €582 million in 2024 from €482 million in 2023, lowering S&P Global Ratings-adjusted leverage to about 6.1x in 2024 from 6.3x in 2023.

Casper Topco, the parent company of B&B Hotels, plans to issue through its financial subsidiary Casper Bidco a €1.25 billion loan due in 2031. It will use the proceeds to repay the outstanding €715 million and €255 million first-lien loan tranches due 2026 and about €79 million of French state-guaranteed loans received during the pandemic.

As part of the transaction, the company will also increase the size of its revolving credit facility to at least €180 million from €120 million and extend the revolver's maturity to 2030, six months before the new loan expires.

The outlook is stable.

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