...NEW YORK (S&P Global Ratings) Nov. 29, 2017--S&P Global Ratings today lowered its issue-level rating on Las Vegas-based gaming equipment manufacturer AP Gaming Holdings LLC's senior secured credit facility to 'B' from 'B+' following the company's announcement that it intends to issue $65 million of incremental term loan debt to fund an acquisition. We also revised the recovery rating on this debt to '3' from '2'. The '3' recovery reflects our forecast for meaningful (50%-70%; rounded estimate: 60%) recovery for lenders in a payment default. The additional enterprise value from the proposed acquisition is insufficient to offset the expected increase in secured debt at default as a result of the proposed $65 million incremental term loan, resulting in lower recovery prospects for secured lenders. The company plans to use proceeds from the incremental term loan to fund the acquisition of certain assets from another gaming equipment supplier, to fund transaction fees and expenses, and to add...
