Fitch gives Gaming and Leisure notes BBB-

Fitch Ratings said it assigned a BBB- rating to Gaming and Leisure Properties, Inc.’s new $1 billion senior unsecured notes being issued by GLP Capital, LP.

The long-term issuer default rating and existing senior unsecured debt rating is BBB-.

The outlook is stable.

The notes will be issued in two tranches, including one maturing in 2029 and one as a tack-on to the 5.25% notes maturing 2025, and will be pari passu to the company’s existing unsecured debt, the agency said.

The proceeds along with $564 million drawn on Gaming and Leisure’s revolver will fund the acquisition of five assets from Tropicana Entertainment Inc. and Plainridge Park Casino from Penn National Gaming, Inc.

The proceeds will also fund mortgage financings to Boyd Gaming Corp. and ERI for the acquisitions of Pinnacle Entertainment, Inc.'s Belterra Park and Tropicana's Lumiere Place, respectively.

Fitch said the ratings reflect the company’s stable cash flows, conservative financial policy and strong liquidity.

The issuer default rating is partially constrained by the company’s weaker contingent liquidity relative to the more traditional REITs and its tenant concentration, the agency said.

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