S&P: Amaya Gaming loans BB, B

Standard & Poor’s said it assigned a BB- long-term corporate rating to Amaya Gaming Group Inc., along with a BB rating to its proposed $2 billion term loan and $100 million revolver with a 2 recovery rating.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The agency also said it assigned a B rating to the company’s proposed $800 million second-lien term loan with a 6 recovery rating, indicating 0 to 10% expected default recovery.

The company is using the proceeds from the issuance to fund a portion of the $4.9 billion acquisition of Rational Group’s gaming assets, including leading online poker sites PokerStars and Full Tilt Poker, S&P said.

The ratings reflect the company’s fair business risk profile, characterized by a strong share of the growing online poker sector, limited product diversity and good profitability, the agency said.

The company’s financial risk profile is considered aggressive with high leverage pro forma for the acquisition offset by strong expected free cash flow to support some debt reduction, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.