Moody's may up Yonkers Racing

Moody's Investors Service said it placed Yonkers Racing Corp.'s B2 corporate family rating and B2 probability of default rating on review for possible upgrade.

This action follows news that Yonkers is seeking consent from its 11 3/8% senior secured second-lien note holders to allow for a $100 million add-on to these notes, Moody's said.

The proceeds will be used to refinance the company's $83 million 13¼% senior subordinated notes due 2013 and related warrants.

The B1 (LGD 3, 38%) rating on its existing $203 million senior secured second-lien notes due 2016 also was affirmed.

The upgrade review considers that a full refinancing of Yonkers' senior subordinated notes will substantially mitigate the risk associated with the 2011 scheduled opening of the Aqueduct racino located in Queens, New York, Moody's said.

The racino is located only 20 miles from Yonkers' Empire City casino facility and was considered to be a significant rating factor when a first-time rating was assigned in June 2009, the agency said.

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