Moody’s rates Compass, facilities

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Compass III Ltd. (Wyndham Europe).

Concurrently, the agency assigned a B2 rating to the proposed senior secured facilities and a Caa2 rating to the proposed second-lien loan to be issued by Compass IV Ltd. The senior secured facilities include €585 million term loan B due 2025 and a multi-currency €105 million revolving credit facility due 2024. The €167 million second-lien loan is due in 2026.

The outlook is stable.

"The assigned B3 CFR reflects Wyndham Europe's established market position in the European holiday rental market, historical evidence of good customer retention rates and solid margins. However, the rating also reflects high starting leverage, relatively small size of the individual business segments and exposure to technological risk," Egor Nikishin, Moody's lead analyst for Wyndham Europe, said in a news release.

Proceeds from the proposed debt, along with about $400 million of cash equity contributed by Platinum Equity Advisors LLC, will be used to fund the $1.3 billion buyout of Wyndham Europe from Wyndham Worldwide Corp. (Baa3/RUR down).

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.