Moody’s rates Station Casinos loans Ba2

Moody’s Investors Service said it rated Station Casinos LLC’s planned senior secured revolving credit facility and senior secured term loan Ba2.

The agency said it also affirmed the ratings on the company's outstanding senior secured revolving credit facility, term loan A, and term loan B1 at Ba3 and plans to withdraw them. It also affirmed the B1 corporate family rating, the B1-PD probability of default rating and the B3 rating on its senior unsecured notes. The company's speculative grade liquidity rating remains SGL-2.

“The secured rating assigned at Ba2 reflects the mix shift in the company's capital structure, with the reduction in secured debt and the increase in unsecured debt, supporting the recovery prospects of the secured debt,” Moody’s said in a press release.

Station will use the proceeds along with expected new unsecured debt to be issued and a $200 million draw on the company's revolver, to pay down its term loan A due 2025, refinance the term loan B1 due 2027, and pay related fees and expenses.

The outlook remains stable.

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