S&P rates 155 East Tropicana notes B-

Standard & Poor's said it assigned its B- rating to the new $125 million senior secured notes due 2012 to be issued by 155 East Tropicana LLC and its wholly owned subsidiary, 155 East Tropicana Finance Corp.

At the same time, S&P also assigned a B- corporate credit rating to the parent company. The outlook is stable.

Proceeds from the notes will be used to refinance existing debt that was incurred to purchase the Hotel San Remo and to renovate the asset into the Hooters Casino Hotel.

S&P said the ratings on 155 East Tropicana reflect the challenges associated with the planned re-branding and repositioning of the existing San Remo into the Hooters Casino Hotel, given the property's off-Strip location and highly competitive market environment. Also, the company's high pro forma debt leverage and small cash flow base increase the risks that a slower-than-expected ramp-up period could damage the company's overall liquidity situation.

© 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.