S&P rates Ontario Gaming, loan B

S&P said it assigned B ratings to Ontario Gaming GTA LP (OTG) and its planned $200 million revolving credit facility, an $800 million term loan B (TLB), and $400 million other secured debt. The recovery rating on the debt is 3, indicating a meaningful recovery (50%-70%; rounded estimate 65%) in default. The outlook is stable.

OTG is a joint venture between Great Canadian Gaming Corp. and Brookfield Business Partners (Brookfield).

“We forecast steady EBITDA growth following revenue ramp-up from new (Pickering) and upgraded (Toronto) casinos amid the normalization of post-pandemic foot traffic. However, we expect leverage will remain in the 5x-5.5x range and free operating cash flow (FOCF) will be close to breakeven through fiscal 2024,” the agency said in a press release.

OTG will use the new debt to refinance its capital structure.

© 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.