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Prospect News home > News index > List of issuers H > Headlines for HSP Gaming Prop. Mezz. LP > News item |
S&P rates HSP notes B-
Standard & Poor's said that it assigned HSP Gaming Prop. Mezz. LP's proposed $235 million of senior secured notes due 2016 a preliminary B- issue-level rating with a 3 recovery rating, indicating expectations for meaningful (50% to 70%) recovery.
S&P affirmed all of the existing ratings on the company, including the B- corporate credit rating.
The outlook is negative.
The company will use proceeds from the proposed notes issuance to repay the $206 million outstanding balance on its existing term loan as well as the $20 million balance on its furniture, fixture and equipment facility.
The ratings reflect HSP's reliance on a single property for cash flow generation and the highly competitive dynamics in the region, the agency said.
Although the existing credit agreement and the proposed notes indenture will restrict the company's ability to make cash distributions to the equity holders, the preferred equity have debt-like characteristics given that the securities likely represent a future claim on cash, the agency added.
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