Moody’s rates Gamenet notes B1

Moody’s Investors Service said it assigned a B1 rating to Gamenet Group SpA’s €300 million of senior secured notes and €340 million of floating-rate notes due 2025. The Gamma Bidco SpA will issue the notes.

Proceeds along with €48 million of cash on the balance sheet will be used to repay the €431.5 million secured notes, the €215.9 million Gamma Bidco loan and to pay for transaction fees and expenses.

The company will also enter into a new €100 million revolver agreement, upsized from the current €85 million revolver, that will remain super senior to the senior secured notes. Moody’s said it will withdraw the ratings on the €431.5 million secured notes upon repayment.

The agency also confirmed the B1 ratings and changed the outlook for the company and Gamma Bidco to negative from under review. The confirmation and outlook change end the review started on March 27, the agency said.

“The negative outlook reflects the company’s increase in leverage and some uncertainty as to the company’s performance given the coronavirus outbreak, though to date it has performed well relative to peers amid this crisis. It also reflects the change of ownership from a publicly listed company with a clearly defined financial policy to a sponsor-led shareholding structure, which Moody’s expects will likely have more appetite for leverage and risk,” Moody’s said in a press release.

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