S&P gives Golden Eagle CCC+

S&P said it assigned GEE Acquisition Holdings Corp. (Global Eagle Entertainment) CCC+ issuer rating to the company on its emergence from bankruptcy.

The agency also gave B- issue-level and 2 recovery ratings to the $205 million exit and CCC- issue-level and 6 recovery ratings to the second-lien takeback facility.

“The rating reflects uncertainty around the pace of recovery in Global Eagle's earnings and cash flow, which could result in tightening liquidity in 2022 if conditions do not improve significantly. Despite the company's reduction of more than $500 million of debt upon its emergence from bankruptcy, we believe depressed levels of air travel and lack of cruise sailings will likely pressure all three of Global Eagle's business segments until a meaningful recovery of leisure travel in both air and sea occurs,” S&P said in a press release.

The outlook is stable. The outlook mirrors the view that Global Eagle has enough liquidity to meet its financial obligations over the next year, but that debt to EBITDA will remain above S&P’s upgrade trigger of 6x over the next year, the agency said.

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