Moody's rates Scientific Games notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to Scientific Games International, Inc.'s proposed $1.1 billion senior unsecured notes due 2026.

The existing Ba3 rating on the company's revolver and term loan, Ba3 rating on its senior secured notes, Caa1 rating on its senior unsecured notes and Caa1 rating on its senior subordinated notes are unchanged.

Scientific Games Corp.'s B2 corporate family rating, B2-PD probability of default rating and SGL-2 speculative grade liquidity rating also are unchanged.

The outlook remains stable.

The proceeds from the new proposed $1.1 billion senior unsecured notes will be used to repay about $1 billion of the company's existing $2.2 billion 10% senior unsecured notes due 2022, Moody's said.

The proposed refinancing will reduce annual cash interest expense by about $17 million and extend debt maturities, the agency said.

The proposed transaction is largely debt neutral, should be accretive to the company's free cash flow and aligns with an expectation for continued reduction in leverage from current levels, which is key to the company maintaining its existing rating, Moody's 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.