Research Update: Spanish Gaming Company Codere Upgraded To 'CCC' From 'SD' On Completion Of Restructuring; Outlook Negative

Codere S.A. recently completed its debt restructuring via a scheme of arrangement. The restructuring included a two-year maturity extension to November 2023 and amendments to the interest terms of the existing $300 million and €500 million senior notes; the provision of €250 million in new money senior notes; the redemption of the existing €95 million revolving credit facility (RCF); and the introduction of a minimum €40 million liquidity covenant. We are raising our issuer credit rating to 'CCC' from 'SD' (selective default). The rating now indicates the potential for a default within the next 12 months reflecting the company's weak liquidity, the risk of covenant breach, its still-unsustainable capital structure, and the uncertain macroeconomic environment. We are also raising our

...- Codere S.A. recently completed its debt restructuring via a scheme of arrangement. The restructuring included a two-year maturity extension to November 2023 and amendments to the interest terms of the existing $300 million and 500 million senior notes; the provision of 250 million in new money senior notes; the redemption of the existing 95 million revolving credit facility (RCF); and the introduction of a minimum 40 million liquidity covenant. - We are raising our issuer credit rating to '###' from '##' (selective default). The rating now indicates the potential for a default within the next 12 months reflecting the company's weak liquidity, the risk of covenant breach, its still-unsustainable capital structure, and the uncertain macroeconomic environment. - We are also raising our issue ratings on the 500 million and $300 million senior secured notes to '###' from 'D' and the issue rating on the 85 million super senior notes to '###+' from '###-'. We are affirming our rating on the...

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