Affinity Interactive’s debt crisis deepens as credit ratings plummet
Affinity Interactive, a casino operator with properties in Nevada, Iowa, and Missouri, faces financial headwinds. Moody's and S&P Global Ratings have downgraded its credit rating due to rising debt and declining earnings. The company's debt is trading at low prices, and it has limited refinancing options.
Affinity Interactive's debt-to-EBITDA ratio has surged from 7.8 times in 2023 to about 11.7 times by late 2024. The company's senior secured notes due in 2027 are trading for less than half their face value. To raise cash, Affinity Interactive sold Rail City Casino in Sparks, Nevada.
Moody's and S&P Global Ratings have downgraded Affinity Interactive's credit rating due to these financial struggles. Some bondholders have hired Akin Gump Strauss Hauer & Feld LLP for potential restructuring assistance. Affinity Interactive is working with Moelis & Co. to manage its growing debt load. The company is considering selling assets, including real estate and digital gaming properties like Daily Racing Form, to raise funds and improve its financial situation.
Affinity Interactive's next steps may involve a planned restructuring or operational changes to improve its financial situation. The company is exploring various options to manage its debt load and boost earnings. Z Capital Group, which owns Affinity Interactive, is closely monitoring the situation.
Read also:
- India's Agriculture Minister Reviews Sector Progress Amid Heavy Rains, Crop Areas Up
- Cyprus, Kuwait Strengthen Strategic Partnership with Upcoming Ministerial Meeting
- Inspired & Paddy Power Extend Virtual Sports Partnership for UK & Ireland Retail
- South West & South East England: Check & Object to Lorry Operator Licensing Now
