S&P rates Argosy loan BB

Standard & Poor's said it assigned its BB rating and a recovery rating of 3 to Argosy Gaming Co.'s proposed $675 million senior secured credit facility and affirmed its ratings on Argosy, including its BB corporate credit rating.

The outlook remains stable.

Proceeds from the proposed bank facility will be used to refinance existing bank debt and for fees and expenses.

S&P said the ratings reflect Argosy's relatively small portfolio of casino assets, cash flow concentration in two of its assets, and the company's exposure to recent legislative actions. These factors are offset by a somewhat geographically diverse portfolio of casino assets, adequate credit measures for the rating, and an expected increase in near term free cash flow generation.

© 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.