Moody's rates Golden Nugget notes, B1, Caa2

Moody's Investors Service said it assigned a B1 to Golden Nugget, LLC's planned $1.85 billion of senior secured notes and a Caa2 to the company's upcoming $1.85 billion of senior unsecured notes. All other ratings remain unchanged.

“The B1 rating on the $1.85 billion senior secured notes due 2029 reflects the notes pari passu first-lien secured position in the capital structure alongside the senior secured revolver and term loan B as well as the support received from a significant amount of liabilities that are ranked junior to these facilities, particularly the senior unsecured notes. The Caa2 rating on the $1.85 billion senior unsecured notes due 2030 reflect their junior position in the capital structure and the lack of any material liabilities that rank junior to these notes,” Moody’s said in a press release.

The proceeds and an expected $1.85 billion senior secured term loan B will be used to refinance all Golden Nugget debt, fund a $250 million dividend and place an added $650 million of cash on the balance sheet.

The outlook is positive.

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