Moody's rates Carlson Wagonlit notes provisional B2

Moody's Investors Service said it assigned a provisional B2 rating to the proposed issuance of €285 million senior secured floating-rate notes by Carlson Wagonlit BV.

Proceeds from the issuance, which will mature in 2015, will be used to refinance the $345 million mezzanine bridge facility, which was part of the package, including $850 million senior secured bank facilities rated Ba3 by Moody's, arranged to primarily fund the acquisition of Accor's 50% stake in CWT by Carlson Companies Inc. and One Equity Partners and the purchase of Navigant International Inc. by CWT.

The notes are fully and unconditionally guaranteed on a senior basis by Carlson Wagonlit Super Holding BV, the parent, but guaranteed only on an unsecured senior subordinated basis by the cash-flow generative operating entities, Moody's said it said it said it said it said.

In Moody's view, the collateral offers limited protection to bondholders as it is either pledged on asset-light holdings or pledged on a priority basis for the benefit of the lenders under the senior secured bank facilities. The rating factors in contractual and effective subordination to the senior secured bank debt, which represents more than 70% of CWT's consolidated debt, the agency said.

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