S&P rates Eldorado Resorts loan BB-, notes B-

Standard & Poor’s said it affirmed a B corporate credit rating on Eldorado Resorts Inc. and revised the outlook to stable from negative.

S&P also said it assigned a BB- rating and 1 recovery rating to the company’s proposed $575 million senior secured credit facility, consisting of a $150 million revolver and a $425 million term loan B.

The 1 recovery rating reflects 90% to 100% expected default recovery.

The agency also said it assigned a B- rating and 5 recovery rating to the company’s proposed $375 million senior notes.

The 5 recovery rating reflects 10% to 30% expected default recovery.

The proceeds from the term loan and notes, together with cash on hand and an expected $60 million future equity raise, will be used to fully refinance $168 million in 8 5/8% senior secured notes issued by subsidiary Eldorado Resorts LLC; fully refinance $561 million in 11˝% second-lien notes issued by MTR Gaming Group Inc.; fund the purchase of the remaining 50% stake in the Silver Legacy Resort Casino; fund the purchase of the Circus Circus Hotel & Casino in Reno; refinance existing debt at Silver Legacy; and pay call premiums on the Resorts and MTR notes, S&P said.

The outlook revision reflects a forecast for improved credit measures, pro forma for the proposed financing transactions and the acquisitions, the agency said.

The ratings also consider the company’s weak business risk profile and highly leveraged financial risk profile, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.