Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers M > Headlines for Maverick Gaming LLC > News item |
Moody's assigns Maverick B3
Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Maverick Gaming LLC.
A B3 rating was assigned to Maverick's expected $300 million seven-year senior secured term loan and a Ba3 rating was assigned to its proposed $50 million five-year super-priority first-out revolving credit facility that will be undrawn at closing.
“Maverick's B3 corporate family rating is constrained by its high leverage level, with the expectation for debt-to-EBITDA leverage to come down from over 7x pro-forma for the close of the refinancing transaction, to be in the mid to low 5x range over the next 12 months. The company's growth strategy, including acquiring gaming assets and improving operations, has been a key driver of the company's increased debt levels and rapid growth, seen largely in 2019 through multiple acquisitions,” Moody’s said in a press release.
Term loan proceeds, along with $93 million of proceeds from the sale and leaseback of 4 properties plus $7 million of cash on hand, will be used to refinance Maverick's $380 million of debt in full, as well as pay associated debt breakage and related fees and expenses.
The outlook is stable. The outlook considers that, Maverick will generate positive free cash flow and maintain good liquidity as the business continues to recover, the agency said.
© 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.