Moody's assigns Roompot B2

Moody's Investors Service said it assigned a B2 long term corporate family rating and a B2-PD probability of default rating to Sandy Midco BV (Roompot), the top entity of the new restricted group of Roompot. Concurrently, the agency gave B2 ratings to the new guaranteed senior secured €1.05 billion term loan B with a seven-year tenor and to the new guaranteed senior secured €125 million revolver with a 6.5-year tenor issued by Sandy Bidco BV, a sub-holding company of Sandy Midco.

“The B2 CFR balances the high Moody's-adjusted leverage expectation of around 7x at closing against an enhanced business profile underpinned by its leading position in the favorable Dutch holiday resort market and significant synergy potential, which should support earnings growth. The rating also reflects Moody's expectation that the company will delever to levels more commensurate with the B2 rating over the next 18 months, but relies on a combination of expected price increases and park expansions,” the agency said in a press release.

Moody's also withdrew the B2 CFR and B2-PD PDR and stable outlook on Rose Beachhouse BV, the former parent of Roompot. The B2 ratings on its senior secured term loan B and senior secured RCF will be withdrawn upon the deal’s completion.

The proceeds from the new loans will be used alongside material equity financing, to fund the proposed acquisition of Vacation Rental BV and Landal GreenParks GmbH, refinance Roompot’s debt, including Propco debt and Hooge Raedt bridge, cover related transaction costs and provide some cash overfunding.

The outlook is stable.

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