Moody’s reviews Mohegan Tribal, rates facility B1

Moody's Investors Service said it placed Mohegan Tribal Gaming Authority's (MTGA) B3 corporate family rating on review for upgrade in response to the company's announcement that it intends to refinance its existing credit facility with a new $1.4 billion credit facility, and that it has tendered for its outstanding $585 million 9¾% senior unsecured notes and $100 million 11% senior subordinated notes.

The outlook was revised to under review from positive.

Moody's assigned a B1 to Mohegan Tribal’s new credit facility, which is comprised of a $170 million revolver due 2021, $295 million term loan A due 2021 and $935 million term loan B due 2023.

The B2 rating on the existing credit facilities was affirmed and will be withdrawn once the proposed transaction closes.

The B3 rating on the 9¾% senior unsecured notes due 2021 was also affirmed and will be withdrawn once these notes are tendered.

The 11% senior subordinated notes are not rated.

The company's speculative grade liquidity rating of SGL-2 was also affirmed.

"Moody's concern regarding MTGA's near-term debt maturity profile will no longer be a limiting factor to a higher rating if the credit facility transaction closes as planned and MTGA is successful in arranging additional long-term debt financing to help fund the tender offer," Moody’s senior vice president Keith Foley said in a news release.

"Once these conditions are met, Moody's expects to upgrade MTGA's corporate family rating one-notch to B2."

© 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.