GEE Acquisition Holdings Corp. Assigned 'CCC+' Rating On Debt Reduction Following Emergence From Bankruptcy

GEE Acquisition Holdings Corp. (d/b/a Global Eagle Entertainment) has emerged from bankruptcy with substantially lower debt. The capital structure includes a $205 million priority term exit facility due in 2025 and a $170 million secured takeback facility due in 2026. However, S&P Global Ratings expects EBITDA of up to $20 million in 2021 due to the unprecedented reduction in travel, resulting in weak credit metrics over the next year including debt-to-EBITDA above 15x. We assigned our 'CCC+' issuer credit rating to Global Eagle because it is dependent on favorable business conditions to meet its financial obligations. We also assigned our 'B-' issue-level and '2' recovery ratings to the $205 million exit and our 'CCC-' issue-level and '6' recovery ratings to

...April 30, 2021 - GEE Acquisition Holdings Corp. (d/b/a Global Eagle Entertainment) has emerged from bankruptcy with substantially lower debt. The capital structure includes a $205 million priority term exit facility due in 2025 and a $170 million secured takeback facility due in 2026. - However, S&P Global Ratings expects EBITDA of up to $20 million in 2021 due to the unprecedented reduction in travel, resulting in weak credit metrics over the next year including debt-to-EBITDA above 15x. - We assigned our '###+' issuer credit rating to Global Eagle because it is dependent on favorable business conditions to meet its financial obligations. - We also assigned our 'B-' issue-level and '2' recovery ratings to the $205 million exit and our '###-' issue-level and '6' recovery ratings to the second-lien takeback facility. - The stable outlook reflects our view that Global Eagle has adequate liquidity to meet its financial obligations over the next year, but that debt-to-EBITDA will remain above...

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