Moody's boosts AGS

Moody's Investors Service said it raised AGS, LLC's probability of default rating to Caa3/LD from Ca, reflecting the closing of AGS's debt repurchase.

The agency added that AGS repurchased $10 million of existing term loans at a significant discount to par.

Moody's said it upgraded AGS's term loan and delayed draw term loan ratings to Caa2 to reflect the new post-debt exchange capital structure.

In about three business days, Moody's said it will remove the LD designation from the rating, noting that AGS's Caa2 corporate family rating reflects concerns with the company's liquidity given tight financial covenants, as well as the higher probability that AGS may pursue further debt repurchases that Moody's would deem to be distressed exchanges.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.