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

On July 3, 2018, Blackstone acquired Spain-based gaming company Cirsa Gaming Corp. (BB-/Watch Neg). This was funded through a total of €1,560 million equivalent senior secured notes issued by the newly created entity, LHMC Finco S.a.r.l., and a €710 million equity contribution from Blackstone. These funds were partly used to refinance the existing debt, mainly comprising a total of €950 million senior secured notes. We are assigning our 'B+' rating to LHMC Bidco SLU, the new parent company of Cirsa, and to the senior secured notes due 2023, issued by LHMC Bidco SLU's subsidiary LHMC Finco S.a.r.l. 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%

...+ On July 3, 2018, Blackstone acquired Spain-based gaming company Cirsa Gaming Corp. (##-/Watch Neg). + This was funded through a total of 1,560 million equivalent senior secured notes issued by the newly created entity, LHMC Finco S.a.r.l., and a 710 million equity contribution from Blackstone. These funds were partly used to refinance the existing debt, mainly comprising a total of 950 million senior secured notes. + We are assigning our 'B+' rating to LHMC Bidco SLU, the new parent company of Cirsa, and to the senior secured notes due 2023, issued by LHMC Bidco SLU's subsidiary LHMC Finco S.a.r.l. + 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 5%-6%....

Research Update