...December 10, 2024 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) Dec. 10, 2024--S&P Global Ratings today said it views Bowlero Corp.'s proposed upsizing of its term loan as leverage-neutral. The term loan is expected to be upsized by $100 million to approximately $1.24 billion. The company will use incremental funds to repay $100 million of outstanding borrowings under Bowlero's revolving credit facility (RCF) as a result of acquisition spending, which will result in a balance of about $9 million pro forma for the transaction. While placing more permanent debt in the company's capital structure presents the potential for additional future revolver usage, the use of proceeds to pay down an equal amount of revolver borrowings leads us to not view the transaction as leveraging. Bowlero has spent $523 million on 81 acquisitions over the past seven years, and we anticipate acquisition activity to continue in fiscal year 2025. We continue to expect that the positive...
