S&P rates Light & Wonder notes B+

S&P said it assigned B+ issue-level and 5 recovery ratings to Light & Wonder Inc.'s planned $550 million of senior unsecured notes due 2031. The 5 recovery rating indicates modest (10%-30%; rounded estimate: 10%) recovery in default. Borrower subsidiary Light & Wonder International Inc. will issue the proposed notes.

The company intends to use the proceeds and cash on the balance sheet to redeem its $550 million of unsecured notes due 2025, also rated B+ with a 5 recovery rating, and fund transaction expenses.

“The proposed transaction is leverage neutral, and we expect interest expense will be slightly, but not meaningfully, lower,” S&P said in a press release.

The outlook is stable.

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