S&P hikes Lottomatica

S&P said it raised its ratings on Lottomatica Group SpA and its senior secured notes to BB- from B and discontinued the rating on Gamma Bondco's €400 million of payment-in-kind toggle notes, which were repaid.

Lottomatica completed its IPO and consequently repaid €100 million of 2025 senior secured notes, while Gamma Bondco repaid its €400 million PIK toggle notes. The company also has a new €350 million senior secured revolving credit facility and a new €1.1 billion senior secured bridge to potentially cover its outstanding €1.1 billion 2025 senior secured notes in view of a potential refinancing to extend their maturity to 2028.

“We expect the group will achieve S&P Global Ratings-adjusted leverage of about 4x in 2023 and 3.7x in 2024 (or 3.2x and 2.9x when excluding ultimate parent Gamma Topco's margin loan of €400 million), from 5.3x in 2022, on continued strong performance and a more conservative financial policy commitment,” the agency said in a press release.

The outlook is stable.

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