S&P: Jacobs loan BB-, CCC+

Standard & Poor's said it placed Jacobs Entertainment Inc.'s B- corporate credit rating on CreditWatch with positive implications.

The agency also assigned a preliminary BB- rating to its proposed $260 million first-lien credit facility, which consists of a $50 million revolving credit facility due 2017 and a $210 million first-lien term loan due 2018.

S&P also assigned a recovery rating of 1 to the first-lien credit facility, indicating 90% to 100% expected recovery in a default.

The agency also assigned a preliminary CCC+ rating to the company's proposed $110 million second-lien term loan due 2019 with a preliminary recovery rating of 6, indicating 0% to 10% expected recovery in a default.

The proceeds will be used refinance existing debt and to buy out a management contract, acquire a revenue sharing contract, fund a reimbursement to the company's owner for prior truck stop plaza acquisitions and fund fees and expenses.

The CreditWatch listing reflects an expectation that S&P will raise the corporate credit rating to B from B- after the financing transaction closes.

The upgrade would reflect the elimination of near-term refinancing risk and a belief that operating performance will remain fairly stable over the intermediate term, the agency said.

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