Moody’s rates Georgia Worldwide notes B1

Moody's Investors Service said it assigned a Ba2 corporate family rating and a Ba2-PD probability of default rating to Georgia Worldwide plc.

A Ba2 rating was also assigned to the company's proposed $5 billion equivalent debt offering comprised of about $3.5 billion senior secured notes and roughly €1.2 billion senior secured notes to be issued in multiple tranches with maturities ranging from three years to 10 years.

On July 16, 2014, Gtech SpA entered into an agreement to acquire International Game Technology through the formation of Georgia Worldwide plc. The total uses of funds in conjunction with the acquisition is about $7 billion, or around €5.8 billion.

The Baa3 ratings of Gtech (Baa3) and Baa2 ratings of International Game remain on review for downgrade. Once the transaction closes, Moody's expects to lower the ratings of the Gtech notes assumed by Georgia to Ba2 from Baa3, and the International Game notes that are assumed by Georgia to Ba2 from Baa2, as these notes will have a similar ranking and guarantee as the Georgia notes, and for the most part, secured by similar assets.

At closing, the agency expects to complete the review process by also withdrawing Gtech’s Baa3 corporate family rating and International Game’s Baa2 senior unsecured rating as these organizations will no longer exist.

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