S&P assigns B to Bowlero loan

S&P said it assigned its B issue-level and 3 recovery ratings to Bowlero Corp.'s proposed $900 million senior secured term loan due 2028. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 55%) recovery default.

Bowlero plans to use the proceeds to repay the balance under its revolving credit facility and to pay down its senior secured term loan B facility due in 2024. The company also plans to upsize its revolving credit facility to $200 million from $165 million.

“We view this transaction as primarily debt for debt mostly leverage neutral and it extends the company's maturity profile and increases its available liquidity. We expect the company will incur modestly higher borrowing costs based on current market rates. Because this transaction is only modestly leveraging, it does not affect our B issuer credit rating,” S&P said in a press release.

The outlook is stable.

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