S&P affirms AppLovin on upsizing

S&P said it affirmed the B+ issuer credit rating on AppLovin Corp., along with the B+ issue-level rating on its upsized first-lien credit facility.

AppLovin is raising $400 million incremental first-lien debt, the agency said.

The company will use the majority of this debt to fund acquisitions over the course of 2019, focused on additional mobile game design studios, S&P said.

Although this transaction will increase AppLovin's debt balance to $1.2 billion from about $800 million, the company's very strong 2018 operating performance leaves it with credit metrics comparable to the launch of its original $820 million term loan in August 2018, the agency explained.

The company has continued to outperform growth expectations, including by purchasing a gaming studio in March 2018, S&P added.

The stable outlook reflects an expectation that AppLovin will continue to grow at a very fast clip as it adds new customers and experiences increased spending by its existing customers, the agency said.

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