S&P boosts Maverick Gaming

S&P said it raised Maverick Gaming LLC’s issuer rating to CCC from SD, selective default, and term loan to CCC from B. The agency also affirmed the B- issue-level rating on the company's revolving credit facility and removed it from CreditWatch, where it was placed with negative implications on Aug. 25.

Maverick repurchased about $45 million of its $310 million first-lien term loan at a substantial discount to face value in March and April through open market purchases, negotiated transactions with debt holders, and a tender offer to debt holders. S&P said it considered the buybacks as equivalent to default because of the company’s cash burn, its tight liquidity and lenders getting less than they were originally promised.

“We believe another restructuring or traditional default appears likely in the next 12 months absent a significant favorable change in Maverick's financial position,” the agency said in a press release. It considers the company’s capital structure unsustainable.

The outlook is negative.

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