| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Seminole Tribe of Florida > News item |
Moody's affirms Seminole Tribe
Moody's Investors Service said it affirmed the Seminole Tribe of Florida's Ba1 corporate family and probability-of-default ratings and Ba1/LGD4 senior notes following the Tribe's announcement that it has contracted to acquire Hard Rock International, Inc. from The Rank Group plc for $965 million.
The outlook is negative.
The Tribe expects to fund the purchase price from a combination of debt issued by a new Hard Rock operating company that will be organized as a standalone, non-recourse entity along with equity funding from the Tribe's gaming division. The transaction is expected to close in March 2007.
The agency said the affirmation considers that although the Tribe's gaming division will likely issue a significant amount of debt to finance its equity contribution to the new Hard Rock operating company, the pro forma debt-to-EBITDA ratio will be at or near 1.5x, a level consistent with an A rating category. The affirmation also takes into account the continued strong operating performance of the gaming division, the high quality of the Tribe's casino assets, the favorable demographics of the densely populated central and southern Florida gaming markets and the expectation that the Tribe's lawsuit against former financial advisor Power Plant will not negatively impact the Tribe's financial results over the near-term.
The negative outlook continues to reflect the complexity of the Tribe's lawsuit against Power Plant and the uncertainty associated with the outcome, Moody's said, particularly given the lack of legal precedent with respect to this particular type of lawsuit between a Native American Tribe and a commercial casino developer.
© 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.