S&P rates Enjoy notes B-

S&P said it assigned a preliminary B- corporate credit rating to Enjoy SA.

The agency also said it assigned a preliminary B- rating to the company's proposed senior secured notes.

The outlook is positive.

The agency said it believes investors of the company's senior secured notes don't face a significant disadvantage as creditors of the holding company because the notes will be guaranteed by operating subsidiaries that generate a considerable share of consolidated EBITDA and because they will be secured by real estate and shares collateral.

A preliminary rating considers the successful issuance of the company's proposed $330 million bond, which would significantly improve the company's liquidity for the next 12 months, reduce refinancing risk and strengthen its capital structure, S&P said.

The proceeds will be used to execute the put option by Caesars' for 55% stake in Baluma SA (Enjoy Conrad), which is the company's main EBITDA contributor, the agency said.

The ratings reflect Enjoy's leading market position in the Chilean and Uruguayan markets, some geographic diversity stemming from its presence in Chile, Uruguay and Argentina and recent start of operations in Colombia, S&P said.

The company has a limited revenue diversification with gaming representing about 80% of revenue and EBITDA, the agency said.

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