Moody's gives Holdings Gaming B3, loans B1, Caa1

Moody's Investors Service said it assigned the following ratings to Holdings Gaming Borrower, LP: corporate family rating at B3, probability of default rating at B3, $10 million first-lien revolver expiring in 4.5 years at B1 (LGD2, 25%), $305 million first-lien first-out term loan maturing in 4.5 years at B1 (LGD2, 25%) and $100 million first-lien first-loss term loan maturing in 4.5 years at Caa1 (LGD4, 69%).

The outlook is stable.

According to the agency, proceeds from the proposed first-lien credit facilities, along with a $150 million second-lien term loan maturing in five years (unrated) and a $200 million cash preferred equity contribution, will be used primarily to fund the construction of Holdings Gaming's casino development in Pittsburgh, and refinance an existing bridge loan.

Moody's added that the B3 corporate family rating reflects the highly leveraged and start-up nature of the casino development project.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.