Moody's downgrades Intralot

Moody's Investors Service said it downgraded Intralot SA's corporate family rating to Ca from Caa2, its probability of default to Ca-PD from Caa2-PD and the instrument rating of its guaranteed senior unsecured notes, issued by Intralot Capital Luxembourg SA, to Ca from Caa2.

Intralot announced it entered into a lock-up agreement supporting a proposed capital structure with an ad hoc group of bondholders representing 75% of the senior unsecured notes due 2021 and 13% of the senior unsecured notes due 2024.

Intralot offers to exchange the full €250 million of 2021 notes for €205 million of new senior secured notes due 2025. In parallel, the company offers to trade part of the €500 million 2024 notes for up to 49% of the share capital of an indirect parent of Intralot Inc. Both exchanges are cross-conditional.

“Upon completion, Moody's will likely consider the debt haircut, maturity extension and debt-to-equity swap as a distressed exchange,” the agency said in a press release.

The outlook remains negative.

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