CEC Entertainment LLC's Proposed $660 Million Senior Secured Notes Assigned Preliminary 'B-' Rating (Recovery: '3')

NEW YORK (S&P Global Ratings) March 26, 2025--S&P Global Ratings today assigned its preliminary 'B-' issue-level rating and '3' recovery rating to CEC Entertainment LLC's proposed $660 million senior secured notes due 2030. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a payment default. We expect the company will use the proceeds from the proposed notes to refinance its existing $650 million 6.75% senior secured notes and pay transaction-related costs. We view this transaction favorably because it will extend CEC?s debt maturity profile and is largely leverage neutral. Our 'B-' issuer credit rating on CEC is on CreditWatch, where we placed it with negative implications on Feb. 13, 2025, primarily

...March 26, 2025 NEW YORK (S&P Global Ratings) March 26, 2025--S&P Global Ratings today assigned its preliminary 'B-' issue-level rating and '3' recovery rating to CEC Entertainment LLC's proposed $660 million senior secured notes due 2030. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a payment default. We expect the company will use the proceeds from the proposed notes to refinance its existing $650 million 6.75% senior secured notes and pay transaction-related costs. We view this transaction favorably because it will extend CEC's debt maturity profile and is largely leverage neutral. Our 'B-' issuer credit rating on CEC is on CreditWatch, where we placed it with negative implications on Feb. 13, 2025, primarily reflecting the approaching maturity of its existing senior notes due May 2026. We expect to resolve the CreditWatch once the proposed transaction closes and the company successfully extends its maturity...

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