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S&P rates Ontario Gaming loan B
S&P said it assigned a B rating to Ontario Gaming GTA LP’s planned $450 million add-on term loan. The 3 recovery rating reflects a meaningful (50%-70%, rounded estimate 50%) recovery in a hypothetical default.
The agency also affirmed OTG’s B issuer rating. “Even though the proposed transaction will add sizeable debt on OTG's already debt-heavy balance sheet, we forecast it will deleverage close to 6x within fiscal 2025, stemming from organic EBITDA growth. By 2025, the company will have substantially ramped up its Pickering and Toronto casinos. As such, we estimate meaningful EBITDA growth in 2025,” S&P said in a press release.
OTG will use the add-on to fund a dividend to financial sponsors.
The outlook is stable.
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