S&P ups VistaJet, rates Vista Global loan B

S&P said it assigned its B long-term issuer credit rating to Vista Global Holdings Ltd., the holding company of VistaJet and XOJet, and to its core subsidiary XO Management Holding Inc.

At the same time, the agency raised to B from B- the long-term issuer credit rating on VistaJet Group Holding Ltd. and its core subsidiaries, VistaJet Malta Finance plc and VistaJet Co. Finance LLC.

The outlook is stable.

S&P also assigned a B issue rating to the proposed $280 million senior secured term loan to be issued by XO Management Holding and guaranteed by Vista Global. The 4 recovery rating indicates an expectation of average recovery (30%-50%; rounded estimate: 35%) in the event of a payment default.

The agency raised to B- from CCC+ the issue rating on the existing $300 million senior unsecured notes issued by VistaJet Malta and VistaJet Co. Finance, guaranteed by VistaJet.

Vista Global announced the acquisition of XOJet, one of the largest business aviation companies in North America.

“We think that the combined entity will benefit from a larger scale and enhanced product offering and customer reach, further underpinned by an enlarged EBITDA base and gradually reducing debt,” S&P said in a news release.

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