Moody's gives PITG B3, loans Ba3, Caa1

Moody's Investors Service said it assigned a B3 corporate family rating and B3 probability of default rating to PITG Gaming HoldCo.

A Ba3 (LGD-2, 21%) was assigned to the company's $10 million first-lien three-year revolving credit facility and $370 million first-lien three-year term loan, while a Caa1 (LGD-4, 69%) was assigned to its $250 million second-lien three-year credit facility, the agency said.

The outlook is stable.

Proceeds from the new note offering along with proceeds from an unrated $150 million subordinated loan issued by PITG Gaming SuperHoldCo, the parent company of PITG HoldCo, will be used to fund costs associated with the development, construction, equipping and opening of the Majestic Star Casino Pittsburgh and to repay existing debt and fund an interest reserve, the agency said.

Moody's noted that the B3 corporate family rating reflects the debt-financed and start-up nature of the Majestic Star Casino Pittsburgh as well as the expectation of a high annual interest burden given the current capital markets conditions.

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