Fitch assigns Legends Hospitality B-

Fitch Ratings said it assigned a first-time expected B- long-term issuer default rating to Legends Hospitality Holding Co., LLC.

Fitch also gave an expected BB- rating and RR1 recovery rating to Legends’ proposed $150 million super-priority revolving credit facility and an expected B rating and RR3 recovery rating to Legends’ $350 million proposed senior secured notes, which will be co-issued by Legends Hospitality Co-Issuer, Inc. The outlook is stable.

Sixth Street, a private equity firm, will use the proceeds to help it acquire a majority stake in Legends.

“Fitch’s ratings assume the company’s proposal to refinance its current capital structure, including its $235 million revolving credit facility, $81 million term loan and $254 million in junior notes, is executed largely as planned. While the transaction will add about $120 million of funded debt to the company’s balance sheet, it will modestly improve the company’s liquidity to over $211 million (estimated as of Dec. 31, 2020) while extending its earliest funded maturity to January 2026. This will give the company’s operations time to recover from the adverse impact of Covid-19,” Fitch said in a press release.

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