| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for AP Gaming I, LLC > News item |
Moody’s lifts AP Gaming loans
Moody’s Investors Service said it affirmed AP Gaming I, LLC’s B3 corporate family rating and B3-PD probability of default rating.
Moody’s also said it upgraded the rating on its $403 million senior secured term loan due 2020, including a proposed $250 million add-on, to B2 (LGD 3) from B3 (LGD 3); and the rating on its $40 million senior secured revolver due 2018, including a proposed incremental $15 million, to B2 (LGD 3) from B3 (LGD 3).
Moody’s also assigned a speculative grade liquidity rating of SGL-2.
The outlook is stable
On March 30, AP Gaming signed a definitive agreement to acquire Cadillac Jack from Amaya Inc. for $370 million in cash and a promissory note in an amount of $12 million, Moody’s said. Closing of the acquisition is expected in mid-2015.
The acquisition will be funded through a proposed $250 million add-on to its existing senior secured term loan due 2020, a $12 million promissory note and $161 million of equity from its parent, AP Gaming Holdco, Inc., the agency said.
AP Gaming Holdco also is raising $115 million in senior secured payment-in-kind notes and is receiving a $52 million equity infusion from funds affiliated with Apollo Global Management, Moody’s added.
The ratings consider AP Gaming’s significant pro forma leverage, calculated both with and without management estimated cost synergies, the agency said.
Moody’s said it expects AP Gaming’s pro forma debt-to-EBITDA ratio will be about 5.8x with estimated cost synergies and 6.8x without estimated cost synergies.
The ratings also consider AP Gaming’s small size in terms of revenue and EBITDA and the size of its installed base relative to peers, the agency 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.