Moody's boosts Sugarhouse

Moody's Investors Service said it boosted the rating on Sugarhouse HSP Gaming Prop. Mezz, LP's $300 million of 5 7/8% senior secured first-lien notes due May 2025 two-notches to B2 from Caa1. The agency also raised the corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD. Sugarhouse's $50 million third amended senior secured priority revolver due May 2025 is not rated.

Sugarhouse reduced the limit on the revolver by $45 million to $50 million. The reduction lowers the amount of potential debt ahead of the 5 7/8% notes, Moody’s said.

“The upgrade of Sugarhouse's CFR to B2 from B3 considers that through a combination of EBITDA growth and absolute debt reduction, the company has reduced its leverage to below the level required for an upgrade. Debt to EBITDA for the latest 12-months ended Sept. 30, 2021 was 5.1x, which is below the 6x upgrade factor. Moody's believes the lower leverage is sustainable given the expected continuation of the company's good operating performance and positive free cash flow profile,” the agency said in a press release.

The outlook is stable.

© 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.