S&P slashes Maverick Gaming

S&P said it lowered its ratings for Maverick Gaming LLC to SD, selective default, from B- and its first-lien term loan to D from B-.

The agency also downgraded the issue-level rating on the company's revolving credit facility to B- from B+ and placed it on CreditWatch with negative implications. “The downgrade and subsequent CreditWatch placement on the company's senior secured revolver reflect the likelihood that the issuer credit rating will be no higher than CCC when it is reassessed,” S&P said in a press release.

Maverick bought back about $45 million of its $310 million first-lien term loan at about 82% of the par value. The agency said it considers the buybacks as the equivalent of default and constitutes a debt restructuring.

“We expect to raise our issuer credit rating on Maverick, likely in the next several days. The rating will reflect the ongoing risk of another potential restructuring or a conventional default,” S&P said.

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