Fitch rates Intralot bond BB-

Fitch Ratings said it assigned a final rating of BB- with a recovery rating of RR3 to Intralot Capital Luxembourg SA's senior unsecured €250 million 2021 bond.

The terms of the final documents are in line with the information already reviewed when the expected ratings were assigned.

The bond was issued by Intralot Capital Luxembourg, which is wholly owned by Intralot SA through Intralot Global Securities BV ranking as a senior unsecured obligation pari passu with its bank debt.

The bond benefits from guarantees from Intralot and Intralot Global Securities BV and the main operating subsidiaries of Intralot Global Securities BV, Fitch said.

These guarantors account for about 57% of group EBITDA and 63% of group assets, the agency said.

Fitch said it believes that expected recoveries upon default would be maximized in a going-concern scenario rather than in liquidation given the asset-light nature of Intralot's business.

The precise use of this new cash has not been earmarked, but it can be used for capital expenditure, working capital or acquisition purposes, the agency said.

Fitch also said it estimates that there could be a significant negative carry back from low-earning cash deposits in 2014, which could adversely affect credit metrics.

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