S&P rates William Hill notes BB

S&P said it assigned a BB rating to the proposed £350 million senior unsecured notes to be issued by William Hill plc following the company's announced refinancing transaction.

The new notes will have a 3 recovery rating, indicating 50% to 70% expected default recovery.

The company recently announced a tender offer for its £375 million guaranteed notes due 2020 at 103%. The tender offer will run until April 29, S&P noted.

As part of this transaction, William Hill proposes to use the funds raised to repay the 2020 notes in order to manage its upcoming debt redemption and extend its debt-maturity profile, the agency said.

The new issuance is not expected to have a significant impact on William Hill's credit profile, S&P added.

The stable outlook reflects a view that William Hill will be able to maintain its leverage ratio at 3x to 4x, even after the expected decline in EBITDA triggered by the changes in U.K. regulation, the agency said.

The decline in EBITDA will be partially mitigated by the continuous increase in revenues from the online segment and from revenues coming from the company's growing activity in the United States, S&P said.

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