Through its borrower subsidiary Kingpin Intermediate Holdings LLC, Bowlero Corp. is adding $105 million in incremental debt to its first-lien term loan due 2024. We have assumed the company will use proceeds for potential opportunistic acquisitions and to fund transaction fees. We are affirming our 'B' issuer credit rating on Bowlero Corp. At the same time, we are affirming our 'B' issue-level rating on the first-lien credit facility. The recovery rating on the debt remains '3'. The stable outlook reflects our expectation for good operating performance and that Bowlero will likely complete acquisitions that generate incremental EBITDA. In addition, we expect Bowlero to maintain an adequate cushion despite the debt issuance compared to our 7.5x adjusted leverage downgrade threshold. We
