Bally's Corporation: Assessing the Impact of Debt Relief on Credit Profile and Growth Prospects

Bally's Corporation has embarked on an aggressive debt restructuring strategy in 2025, leveraging a combination of term loan amendments, revolving credit facility extensions, and asset sales to stabilize its balance sheet and position itself for long-term growth. These moves, coupled with a strategic pivot in its business model, have drawn attention from credit rating agencies and analysts, who are cautiously optimistic about the company's path to re-rating and sustainability.

Debt Restructuring and Liquidity Enhancements

The cornerstone of Bally's 2025 restructuring efforts is a $1.1 billion term loan facility secured from private credit funds, including Ares Management, King Street Capital, and TPG Credit. This financing, which includes $600 million in initial term loans and up to $500 million in delayed draw term loans, is earmarked for repaying existing debt, refinancing its revolving credit facility, and covering licensing fees for its New York State casino operations. Complementing this, the company extended its $460 million revolving credit facility to October 2028, providing additional liquidity flexibility.

A pivotal transaction is the planned $735 million sale-leaseback of its Twin River Lincoln Casino Resort, expected to reduce secured debt by $500 million and lower its total debt-to-EBITDA ratio from a historical average of 12.8x to 8.7x. This transaction, along with the $3.17 billion sale of its International Interactive segment to Intralot, which generated $1.76 billion in cash and a 60% equity stake in the combined entity, has significantly bolstered liquidity. Fitch Ratings, recognizing these steps, removed Bally's from its "Rating Watch Negative" status in October 2025, affirming its "B-" credit rating with a stable outlook.

Credit Profile and Financial Metrics

Despite these improvements, Bally's remains highly leveraged, with total debt hovering near $5.7 billion as of Q3 2025. Its debt-to-EBITDA ratio, while improved to 7.57 in Q3 2025, still reflects substantial risk. Liquidity metrics also remain concerning: a current ratio of 0.68 and a quick ratio of 0.66 indicate that the company's short-term assets fall short of covering its liabilities. However, analysts note that Bally's has prioritized debt reduction, with plans to allocate at least $1 billion in proceeds from the Intralot deal to repay secured debt.

The company's operational performance has shown resilience. In Q3 2025, its Casinos & Resorts segment generated $396.1 million in revenue-a 12.1% year-over-year increase-while the North America Interactive segment grew by 13.1% to $49.9 million. These gains, though offset by a $102.9 million net loss for the quarter, underscore the potential for earnings growth as the company sheds non-core assets and focuses on its core gaming operations.

Growth Prospects and Sustainability

Bally's restructuring efforts are not without risks. Its reliance on asset sales and refinancing to reduce leverage exposes it to market volatility and interest rate fluctuations. However, the extension of its revolving credit facility to 2028 and the completion of the Twin River sale-leaseback provide a buffer, ensuring sufficient liquidity to meet obligations through at least 2028. Fitch's stable outlook further signals confidence in the company's ability to manage its debt burden.

Long-term sustainability will depend on Bally's ability to capitalize on its expanded domestic gaming portfolio, including its New York State casino license and the Twin River property. Analysts at Bloomberg Law highlight that the company's focus on high-growth markets and its strategic alignment with Intralot could unlock new revenue streams, particularly in sports betting and online gaming.

Conclusion

Bally's Corporation's 2025 debt relief measures represent a critical step toward stabilizing its credit profile and positioning for growth. While its leverage remains elevated, the combination of asset sales, refinancing, and operational improvements has improved liquidity and secured a stable credit outlook. For investors, the key question is whether Bally's can sustain its operational momentum and execute its strategic vision without overextending its balance sheet. If successful, the company may yet achieve a re-rating, transforming from a speculative bet into a more resilient player in the gaming sector.