Morningstar DBRS confirms B-rating for Intralot, shifts trend to positive
As a result of the positive change, Morningstar DBRS acknowledges the ‘potential improvement’ for Intralot’s business profile and the potential for stronger credit metrics.
Key Points
- Intralot and Bally’s respective Board of Directors recently approved Intralot’s acquisition of Bally’s International Interactive business for an enterprise value of nearly $3.2bn
- Morningstar DBRS balanced the positive trend shift with the recognition of “significant financing needs” along with potential integration challenges
DBRS Rating GmbH (Morningstar DBRS) has confirmed an issuer rating of B for Intralot S.A. following its approximate $3.2bn acquisition of Bally’s Corporation’s International Interactive business, as well as changed its business trend from stable to positive.
As a result of the positive change, Morningstar DBRS acknowledges the ‘potential improvement’ for Intralot’s business profile and the potential for stronger credit metrics following the agreement from both parties.
Morningstar DBRS balances these positives with the recognition of “significant financing needs,” however, along with potential integration challenges such as “realizing synergies in excess of 10% of the combined group’s EBITDA” and a still-leveraged capital structure.
As part of the transaction, Intralot expects to refinance part of its existing debt facilities while Bally’s also plans to repay secured debt from the cash proceeds, including a $1.8bn cash consideration as well as just over $1.1bn of newly issued shares in Intralot.
To support the consideration and refinance part of its existing debt, Intralot obtained commitments from Citizens Bank, Deutsche Bank, Goldman Sachs and Jefferies for debt financing up to approximately $1.9bn.
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Following the completion of the transaction, expected in Q4 2025, Intralot will remain listed on the Athens Stock Exchange and will launch an up to $471.5m share capital increase through an equity share offering, subject to corporate and regulatory approvals.
Bally’s, currently Intralot’s largest shareholder, is also expected to become the majority shareholder of Intralot as a result of the transaction with a “significant” equity stake in the company.
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