S&P rates MGM Resorts loan BB

Standard & Poor’s said it assigned a BB rating and 1 recovery rating to MGM Resorts International’s new $1.5 billion senior secured credit facility due April 2021.

The credit facility consists of a $1.25 billion revolving credit facility and $250 million term loan A. The 1 recovery rating indicates 90% to 100% expected default recovery.

The agency also said it affirmed the B+ ratings on the company’s and Mandalay Resort Group’s existing senior unsecured debt and revised the recovery rating to 3 from 4. The 3 recovery rating indicates 50% to 70% expected default recovery.

The improved recovery prospects for senior unsecured debt holders result from a lower amount of secured and unsecured debt in the company’s capital structure following the sale of real estate to MGM Growth Properties and the resulting secured and unsecured debt repayment, S&P said.

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