Fitch gives Light & Wonder loans BBB-, notes BB

Fitch Ratings said it gave an expected BB issuer default rating to Scientific Games Corp. (Light & Wonder) and Scientific Games International, Inc. and expected BBB-/RR1 ratings to the company's new senior secured credit facility, consisting of a $750 million revolver and a $2.2 billion term loan. The agency also assigned the company's 2028 and 2029 existing unsecured notes expected BB/RR4 ratings. The outlook is stable.

“The company's BB(EXP) rating reflects its improved credit profile pro forma for the planned debt paydown with proceeds from the sale of its lottery and sports betting segments. Gross leverage is expected to decline to the low-3x range with FCF margin sustaining in the high-teens percent, both solid for a gaming supplier and mobile developer. The more conservative capital structure will support the company's increased focus on casual mobile gaming, which is extremely competitive and hit-driven in nature,” Fitch said in a press release.

The agency said it forecasts Light & Wonder’s FCF generation and margin will reach $500 million and 15%, respectively.

© 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.