Moody’s assigns Station loans Ba3

Moody’s Investors Service said it assigned Ba3 ratings to Station Casinos LLC’s proposed amended and extended revolver due 2025, term loan A due 2025 and term loan B due 2027. Station’s B1 corporate family rating, B1-PD probability of default rating and B3 ratings on the company’s recently announced $750 million senior unsecured notes and $550 million 5% senior unsecured notes remain unchanged. The SGL-1 speculative grade liquidity and stable outlook remain unchanged.

Proceeds along with proceeds from the previously announced $750 million (upsized from $500 million) of senior unsecured notes, will be used to refinance and reduce revolver outstandings, refinance all or the majority of the company’s term loan A, refinance and reduce term loan B outstandings and pay related fees and expenses.

The ratings on Station’s existing revolver and term loans are unchanged and will be withdrawn once the transaction closes and if these facilities/tranches are repaid in full.

Although the transaction is neutral from a leverage and interest perspective, coupled with the previously announced $750 million of notes issuance, the amend and extend of the revolver and term loans is a credit positive Moody’s said, because it extends Station’s debt maturity profile and increases the size of and availability under the company’s revolver, supporting its very good liquidity profile.

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