S&P rates Bally’s loans BB-, notes CCC+

S&P said it gave Bally’s Corp.’s planned $2.045 billion credit facility, consisting of a $600 million revolver and a $1.445 billion term loan, BB- issue and 1 recovery ratings. The agency also assigned CCC+ issue and 6 recovery ratings to Bally’s planned $1 billion in eight-year senior unsecured notes and $1 billion in 10-year senior unsecured notes.

Bally’s intends to use the proceeds to help it acquire Gamesys Group plc.

“Despite higher pro forma leverage, we affirmed our B issuer credit rating based on our improved view of the business. However, although we forecast that Bally's leverage will improve on earnings growth, its pro forma adjusted debt to EBITDA will remain high in the mid- to high-6x area over the next 12 months, providing limited cushion against any potential integration and execution missteps,” S&P said in a press release.

The outlook is stable.

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