Bulletin: Bowlero Will Maintain Adequate Leverage Cushion Despite $150 Million Term Loan Add-On To Fund Lucky Strike Acquisition

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) June 6, 2023--S&P Global Ratings today said that it expects Bowlero Corp. (B/Stable/--) will maintain an adequate leverage cushion for the rating despite the heightened pressures facing consumer discretionary spending over the next 12 months. The company will fund its $90 million purchase of Lucky Strike Entertainment LLC (not rated) with a $150 million add-on to its existing $900 million first lien term loan, both issued by its subsidiary Kingpin Intermediate Holdings LLC, and will use any remaining proceeds to repay outstanding borrowings on its revolving credit facility. Bowlero also expects to upsize its revolving credit facility to $235 million, from $200 million, to support its liquidity

...June 6, 2023 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) June 6, 2023--S&P Global Ratings today said that it expects Bowlero Corp. (B/Stable/--) will maintain an adequate leverage cushion for the rating despite the heightened pressures facing consumer discretionary spending over the next 12 months. The company will fund its $90 million purchase of Lucky Strike Entertainment LLC (not rated) with a $150 million add-on to its existing $900 million first lien term loan, both issued by its subsidiary Kingpin Intermediate Holdings LLC, and will use any remaining proceeds to repay outstanding borrowings on its revolving credit facility. Bowlero also expects to upsize its revolving credit facility to $235 million, from $200 million, to support its liquidity and fund potential future acquisitions. We continue to expect the company will generate healthy cash flow over the next 12 months and project annual operating cash of about $250 million in fiscal years 2023...

Bulletin