Fitch rates Everi, notes B+, loan BB+

Fitch Ratings said it assigned first-time B+ long-term issuer default ratings to Everi Holdings Inc. and Everi Payments Inc. In addition, Fitch assigned a BB+/RR1 rating to Everi’s senior secured credit facility and a B+/RR4 rating to Everi’s senior unsecured notes.

“Everi’s rating reflects its improved credit metrics, conservative financial policy, and position as a more niche gaming supplier, albeit with an expanding portfolio of products. The ratings also reflect Everi’s business mix diversification, as EBITDA is roughly split between slots and financial technology solutions (FinTech) for its casino customers,” said Fitch in a press release.

On December 4, Everi announced an equity issuance and said it plans to use the proceeds to pay down debt. “The transaction is viewed favorably and will create additional headroom at the B+ IDR level, reducing gross debt/EBITDA by roughly half a turn. Interest savings will be roughly $10 million annually and will further strengthen FCF,” Fitch said.

The outlook is stable.

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