Rating Action: Moody’s assigns B3 CFR to Herschend Entertainment and B3 rating to new Term Loan; outlook stable
New York, August 10, 2020 — Moody’s Investors Service, (“Moody’s”) assigned Herschend Entertainment Company, LLC (Herschend) a B3 corporate family rating (CFR), a B3-PD Probability of Default (PDR), and a B3 rating to the proposed $465 million term loan B due 2025. The outlook is stable.
Net proceeds of the proposed $465 million term loan B will be used to refinance outstanding debt and add cash to Herschend’s balance sheet. Pro forma for the transaction leverage is 4.1x as of Q1 2020 with approximately $151 million of cash on the balance sheet. However, the company will not have access to a revolving credit facility.
The debt will be issued by three different co-borrowers with Herschend Entertainment Company, LLC as the lead borrower, in conjunction with Herschend Adventure Holdings, LLC, and Harlem Globetrotters International, Inc. The parent company will not be a…