Moody's: American Casino outlook developing

Moody's Investors Service said it changed the outlook of American Casino & Entertainment Properties LLC to developing from stable following the announcement by parent company American Real Estate Partners, LP that it agreed to sell American Casino to Whitehall Real Estate for $1.3 billion, subject to approval by the Nevada Gaming Commission and the Nevada State Control Board and customary conditions. The parties expect to close the transaction within eight months; no financing details were disclosed.

American Casino's 7.85% senior secured notes due 2012 have a change-of-control provision under which the company would have to buy back outstanding notes at 101% plus accrued interest.

The agency said the developing outlook reflects uncertainty regarding the likely credit profile of American Casino following the acquisition.

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