S&P rates AP Gaming loan B+

S&P said it assigned a B+ rating and 2 recovery rating to AP Gaming Holdings LLC's proposed $480 million senior secured credit facility, consisting of a $450 million term loan B due 2024 and a $30 million revolver due 2022.

AP Gaming's subsidiary, AP Gaming I LLC, will issue the credit facility.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The proceeds will be used to refinance its $420 million term loan due 2020, repay seller notes, add cash to the balance sheet and fund transaction fees and expenses, S&P said.

The agency said it intends to withdraw the ratings on the company's existing credit facility once it is fully repaid.

The transaction is expected to reduce AP Gaming's interest expense because the interest rate on the new term loan will be lower, resulting in improved forecasted total interest coverage, S&P said.

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