Affinity Gaming Improves Financials

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On December 15, 2020, S&P Global Ratings raised its issuer credit rating on Affinity Gaming to B- from CCC+. The upgrade reflects that Affinity's liquidity position has improved in recent months given good (high-20%) year-over-year EBITDA growth in the third quarter of 2020 and support from the Company's owner, which allowed the Company to repay outstanding borrowings under its revolver due 2021 and reduce near-term liquidity risks, according to the ratings agency. Further, S&P Global believes EBITDA will continue to be sustained at a level that can support coverage of interest expense of at least 1.5x.

Affinity Gaming plans on entering into a $50 million super senior priority revolver to replace its existing undrawn $75 million revolver due July 2021 and issuing $475 million in senior secured notes. The Company intends to use the proceeds, along with some cash on hand, to repay its existing first and second lien term loans and to return an equity contribution its sponsor made earlier this year to ensure covenant compliance.

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