Moody’s ups Gamenet notes, rates Gamenet Group B1

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to Gamenet Group SpA, a recently formed entity incorporated in June in connection with the Intralot Italia acquisition and the new parent holding company of Gamenet SpA.

Concurrently, the agency assigned provisional B1 rating to the proposed €200 million senior secured notes due 2021 to be issued by Gamenet Group, and upgraded the rating on the outstanding €200 senior secured notes due 2018 issued by Gamenet to B1 from B2.

The outlook is stable.

Proceeds from the 2021 notes will be used to refinance the outstanding 2018 notes, which rating will be then withdrawn. The refinancing transaction, expected to complete in August, follows the completion of the acquisition of Intralot Holding and Service SpA and its subsidiaries on June 17 and the incorporation of Gamenet Group as new holding company of the group.

Moody's withdrew the B2 corporate family rating and B1-PD probability of default rating of Gamenet.

Moody’s said the action reflects its view that the acquisition of Intralot Italia in connection with the refinancing of the 2018 notes is credit positive for Gamenet as: (a) It increases the group's revenues size by about €473 million and EBITDA before synergies by €4 million (based on fiscal year 2015 figures under the Italian GAAP) and potentially more once expected synergies will be achieved; (b) diversifies the group's business activities into retail and online betting and strengthen its market shares in these two segments; and (c) improves the group's credit metrics and liquidity by pushing ahead the debt maturity, reducing the interest costs and putting in place a new €30 million revolving credit facility to fund intra quarter capital swings.

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