Research Update: LHMC Bidco, Cirsa Gaming Corp. Parent, Assigned Prelim 'B+' Ratings; Outlook Stable

On April 27, 2018, Blackstone announced its acquisition of Spain-based gaming company Cirsa Gaming Corp. (BB-/Watch Neg). This will be funded through €1,560 million proposed senior secured notes issued by the newly created entity, LHMC Finco SLU., and €710 million equity contribution from Blackstone. These funds will be partly used to refinance the existing debt, mainly comprising a total of €950 million senior secured notes. We are assigning our preliminary 'B+' rating to LHMC Bidco SLU, the new parent company of Cirsa, and to the proposed senior secured notes, due to be issued by LHMC Bidco SLU's subsidiary LHMC Finco Sarl. The stable outlook reflects our expectation that Cirsa's revenues will increase by around 2%-4% and the reported EBITDA margin

...+ On April 27, 2018, Blackstone announced its acquisition of Spain-based gaming company Cirsa Gaming Corp. (##-/Watch Neg). + This will be funded through 1,560 million proposed senior secured notes issued by the newly created entity, LHMC Finco SLU., and 710 million equity contribution from Blackstone. These funds will be partly used to refinance the existing debt, mainly comprising a total of 950 million senior secured notes. + We are assigning our preliminary 'B+' rating to LHMC Bidco SLU, the new parent company of Cirsa, and to the proposed senior secured notes, due to be issued by LHMC Bidco SLU's subsidiary LHMC Finco Sarl. + The stable outlook reflects our expectation that Cirsa's revenues will increase by around 2%-4% and the reported EBITDA margin will remain above 20% over the next 12 months, leading to adjusted debt to EBITDA of 4.7x-4.8x and free operating cash flow to debt of around 6%....

Research Update