S&P rates B&B Hotels loan CCC+

S&P said it rated B&B Hotels’ planned €100 million first-lien TLB add-on CCC+ with a 3 recovery rating. B&B’s affiliate Caspar BidCo SAS will be the borrower. B&B is a subsidiary of Caspar MidCo SAS. The agency also affirmed the CCC+ ratings on Caspar and its first-lien term loan. Also, S&P affirmed the CCC- rating on its second-lien loan.

B&B will use the proceeds and an €80 million equity injection from shareholder Goldman Sachs MBD to strengthen its liquidity.

Concurrently, the agency revised Caspar’s outlook to negative, citing an estimated recovery for B&B that will take longer than previously expected.

“Covid-19 is continuing to affect economic activity in Europe, with several countries maintaining restrictions to curb the virus, and B&B Hotels’ recovery has not been in line with our previous base. We now estimate that the revenue per available room (RevPar) and total revenue in 2020 will have declined by about 50% from €39 and €638 million, respectively, in 2019,” S&P said in a press release.

The agency said it expects the new few quarters B&B’s operating environment will remain difficult.

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