Moody's gives LC Ahab US, loans B2

Moody's Ratings said it assigned a first-time B2 corporate family rating and the B2-PD probability of default rating to LC Ahab US Bidco LLC with a stable outlook. The agency also assigned B2 ratings to the backed senior secured first-lien bank credit facilities that include a $525 million backed senior secured first lien term loan due in 2031 and a $75 million backed senior secured first-lien revolving credit facility due in 2029.

“The B2 corporate family rating reflects Ama's relatively modest size based on revenue and its competitive position in the river cruise industry. Ama is the second largest river cruise operator based on fleet size, behind market leader, Viking River Cruises (Viking), which operates 81 river cruise vessels. Ama competes against Viking in the premium segment of the market and against three smaller players in the luxury segment of the river cruise market. Ama's fleet numbers 25 vessels in operation, with two new deliveries entering service in each of 2024 and 2025,” Moody’s said in a press release.

The agency said it forecasts the company’s Moody’s-adjusted debt/EBITDA at the end of 2024 and 2025 will likely be below 4.5x.

The term loan plus a substantial equity contribution will fund the purchase of river cruise company, AmaWaterways SCS by private equity firm, L Catterton. The acquisition is expected to be completed contemporaneous with the execution of the new credit facility agreement. Ama will be an indirect operating subsidiary of Bidco, an intermediate holding company in the company's corporate structure.

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