S&P rates Golden Nugget B

S&P said it assigned Golden Nugget LLC a B issuer rating and will withdraw all its Golden Nugget Inc. ratings. Concurrently, the agency gave B+ issue-level and 2 recovery ratings to the planned senior secured facility, which includes a cash flow revolving credit facility and term loan B.

The company plans to issue a $1.85 billion term loan B and a $500 million revolver as well as $3.7 billion of additional secured and unsecured notes, which will address all its near-term capital structure maturities.

“The B rating on Golden Nugget LLC reflects its robust recovery from pandemic-induced pressures and our forecast for good performance driving elevated EBITDA and cash generation, which we expect will be sustained well beyond 2021. This should enable improved credit metrics despite greater funded debt,” S&P said in a press release.

The company plans to boost its debt by about $800 million and build cash on the balance sheet. “Golden Nugget is holistically refinancing all its debt, which will address looming capital structure maturities that we previously considered a risk,” the agency said. S&P forecasts Golden Nugget’s leverage to be in the low-5x area in fiscal 2022.

The outlook is stable.

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