S&P ups Twin River; loan at BB

Standard & Poor's said that it raised the corporate credit rating on Twin River Worldwide Holdings Inc. to BB- from B+.

The outlook is stable.

S&P assigned Twin River Management Group, Inc.'s proposed $285 million senior secured credit facility a preliminary issue-level rating of BB and a recovery rating of 2, indicating expectation of substantial (70% to 90%) recovery for lenders in the event of a payment default.

The credit facility comprises a $25 million revolving credit facility and a $260 million term loan. The facility is guaranteed by parent Twin River Worldwide Holdings.

The company intends to use the proceeds from the new credit facility to repay its existing term loan, which currently has a balance of $260 million.

The upgrade reflects outperformance relative to previously published expectations, the agency said, and the belief that Twin River can sustain at least the level of EBITDA generated over the past 12 months. Additionally, the company will generate meaningful levels of free operating cash flow, which it will primarily use to repay debt.

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