S&P rates LHMC, notes B+

S&P said it assigned its preliminary B+ long-term issuer credit rating to LHMC Bidco SLU, the newly created parent company of Cirsa Gaming Corp.

The outlook is stable.

At the same time, the agency assigned its preliminary B+ issue rating and 3 recovery rating to the proposed €1.56 billion senior secured notes issued by LHMC Finco Sarl. The recovery rating reflects an expectation of meaningful recovery (50%-70%, rounded estimate: 55%) in the event of default.

S&P said the preliminary ratings follow Blackstone's announcement that it will acquire Cirsa Gaming.

The agency said it expects that Cirsa's revenues will increase by around 2%-4% and the reported EBITDA margin will remain above 20% over the next 12 months, leading to adjusted debt to EBITDA of 4.7x to 4.8x and free operating cash flow to debt of around 6%.

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