S&P lifts AP Gaming I facility to B+

Standard & Poor's said it raised its issue-level rating on AP Gaming Holdings LLC's subsidiary AP Gaming I LLC's senior secured debt to B+ from B and revised the recovery rating to 2 from 3.

The 2 recovery rating reflects an expectation for "substantial" (70% to 90%; lower half of the range) recovery for lenders in a payment default. The higher recovery rating reflects the agency’s assessment that the additional value from the acquisition of gaming equipment supplier Cadillac Jack Inc. more than offsets the incremental term loan debt.

AP Gaming’s senior secured credit facility consists of a $40 million revolver (including $15 million in expected incremental revolving credit commitments) due 2018 and a $405 million term loan (including $250 million in expected additional commitments) due 2020.

Additional term loan proceeds, along with proceeds from a $115 million senior secured payment-in-kind note and a $12 million seller note issued by AP Gaming Holdings and capital provided by funds affiliated with Apollo (the company's ultimate owner), will be used to fund the acquisition of Cadillac Jack Inc. and to pay transaction fees and expenses.

© 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.