Spain-Based Cirsa Enterprises Downgraded To 'B' On Dividend Recapitalization; Outlook Stable - S&P Global Ratings’ Credit Research

Spain-Based Cirsa Enterprises Downgraded To 'B' On Dividend Recapitalization; Outlook Stable

Spain-Based Cirsa Enterprises Downgraded To 'B' On Dividend Recapitalization; Outlook Stable - S&P Global Ratings’ Credit Research
Spain-Based Cirsa Enterprises Downgraded To 'B' On Dividend Recapitalization; Outlook Stable
Published Sep 23, 2019
4 pages (2166 words) — Published Sep 23, 2019
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

The parent company of Spain-based gaming company Cirsa Enterprises S.L.U. (Cirsa) intends to issue €375 million senior secured payment-in-kind (PIK) senior secured notes in order to pay a dividend to its shareholders. The new notes will be issued by LHMC Finco 2, an entity outside the restricted group that has 100% indirect ownership of Cirsa. After this transaction, the S&P Global Ratings-adjusted debt to EBITDA ratio of the wider Cirsa group (including LHMC Finco 2) will reach about 5.5x, compared with our previous expectations of around 4.8x, and we expect leverage to remain at similar levels over the next two years. We are therefore lowering our long-term issuer credit and issue ratings on Cirsa to 'B' from 'B+'. We are

  
Brief Excerpt:

...September 23, 2019 The parent company of Spain-based gaming company Cirsa Enterprises S.L.U. (Cirsa) intends to issue 375 million senior secured payment-in-kind (PIK) senior secured notes in order to pay a dividend to its shareholders. The new notes will be issued by LHMC Finco 2, an entity outside the restricted group that has 100% indirect ownership of Cirsa. - After this transaction, the S&P Global Ratings-adjusted debt to EBITDA ratio of the wider Cirsa group (including LHMC Finco 2) will reach about 5.5x, compared with our previous expectations of around 4.8x, and we expect leverage to remain at similar levels over the next two years. - We are therefore lowering our long-term issuer credit and issue ratings on Cirsa to 'B' from 'B+'. We are also assigning a '###+' issue rating to its proposed 375 million senior secured PIK notes due 2025. - The stable outlook reflects our expectation that Cirsa's adjusted debt to EBITDA will be between 5.3x-5.5x and adjusted free operating cash flow...

  
Report Type:

Ratings Action

Issuer
Cirsa Enterprises S.L.U.
GICS
Specialized Finance (40201040)
Sector
Global Issuers
Country
Spain
Region
Europe, Middle East, Africa
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Spain-Based Cirsa Enterprises Downgraded To 'B' On Dividend Recapitalization; Outlook Stable" Sep 23, 2019. Alacra Store. Apr 29, 2024. <http://www.alacrastore.com/s-and-p-credit-research/Spain-Based-Cirsa-Enterprises-Downgraded-To-B-On-Dividend-Recapitalization-Outlook-Stable-2304359>
  
APA:
S&P Global Ratings’ Credit Research. (). Spain-Based Cirsa Enterprises Downgraded To 'B' On Dividend Recapitalization; Outlook Stable Sep 23, 2019. New York, NY: Alacra Store. Retrieved Apr 29, 2024 from <http://www.alacrastore.com/s-and-p-credit-research/Spain-Based-Cirsa-Enterprises-Downgraded-To-B-On-Dividend-Recapitalization-Outlook-Stable-2304359>
  
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