Moody’s rates Scientific Games notes Ba3, Caa1

Moody's Investors Service said it assigned a Ba3 rating to Scientific Games International, Inc.'s proposed €325 million senior secured euro notes due 2026 and a Caa1 rating to the company's proposed €250 million senior unsecured euro notes due 2026.

The company's existing Ba3 rated revolver and term loan, Ba3 rated senior secured notes (including the proposed $500 million 5% notes due 2025 add-on), Caa1 rated unsecured notes and Caa1 rated senior subordinated noted are unchanged.

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

The outlook is stable.

“The proposed refinancing will reduce annual cash interest expense and extend debt maturities,” the agency said in a news release.

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

© 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.