...April 8, 2021 NEW YORK (S&P Global Ratings) April 8, 2021--S&P Global Ratings today assigned its '###' issue-level rating and '4' recovery rating to CEC Entertainment LLC's new $600 million first-lien senior secured notes due in 2026. The '4' recovery rating indicates our expectation for average (30%-50%; rounded estimate: 40%) recovery in the event of a default. The company will use the proceeds to refinance its $200 million first-lien exit term loan and $175 million second-lien exit term loan, with the balance going toward balance sheet cash and a make-whole premium. Our '###' issuer credit rating and negative outlook on CEC are unchanged. They reflect our view that despite the gradual recovery of the out-of-home entertainment industry, CEC will still face an arduous path to recover sales and EBITDA improvement given its unique business model. We believe its liquidity position will improve when the transaction completes. However, a potential delayed recovery or uneven performance could...
