S&P puts B&B Hotels loan rating on watch

S&P said it placed the B rating for Casper Midco SAS’ (B&B Hotels) first-lien term loan on CreditWatch with negative implications.

The company plans to reprice and upsize its existing €665 million first-lien term loan B on the back of sound operating performance.

The negative CreditWatch reflects the potential lower recovery prospects for the upsized tranche under the proposed transaction. “We believe the proposed €705 million first-lien TLB could see weaker recovery prospects in the event of a hypothetical default. Under this scenario, we would revise down the recovery rating to 3 from 2, reflecting 50%-70% recovery in case of a hypothetical default. Upon successful closure of the transaction, we would lower our issue-level rating on the first-lien TLB to B- from B,” S&P said in a press release.

S&P affirmed its B- issuer credit rating and positive outlook on B&B hotels' parent company, Casper MidCo, as well as the CCC issue-level rating on the €155 million second-lien TLB issued by Casper BidCo SAS, the wholly owned subsidiary of Casper Midco.

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