S&P lifts Affinity Gaming facility

S&P said it raised its issue-level rating on Affinity Gaming's first-lien credit facility (consisting of a $75 million revolver and a $330 million term loan B) to B+ from B and revised the recovery rating to 2 from 3, indicating expectations for substantial recovery (70% to 90%; rounded estimate: 85%) in the event of a default.

“The more favorable recovery rating and higher issue-level rating reflect a lower amount of first-lien debt outstanding at default than under our previous assumptions because the company did not add $125 million to its term loan as previously announced to fund a larger $121 million dividend,” the agency said in a news release.

In addition, S&P affirmed the CCC+ issue-level rating on Affinity's $165 million second-lien term loan (pro forma for its proposed $20 million add-on) due 2025. The 6 recovery rating reflects expectations for negligible recovery (0% to 10%; rounded estimate: 0%) in the event of a default.

Lastly, the agency withdrew the issue-level and recovery ratings on Affinity's previously proposed $100 million second-lien term loan, which never closed.

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