Moody's rates 18 Fremont loan B3

Moody's Investors Service said it assigned a B3 (LGD 4) rating to 18 Fremont Street Acquisition, LLC's $550 million senior secured first lien term loan.

A B3 corporate family rating, B3-PD probability of default rating and stable outlook also were assigned.

The outlook is stable.

Fremont currently owns and operates two casinos in Las Vegas – the D Las Vegas and Golden Gate Resort and Casino, Moody's noted.

The proceeds from the proposed term loan, along with $303 million of cash equity, will be used to fund Fremont's new $860 million downtown Las Vegas casino development called Circa Resort and Casino, the agency said.

Circa is currently scheduled to open in December 2020, Moody's said.

The ratings consider the management team's knowledge and success operating in the downtown Las Vegas gaming market, along with the considerable amount of cash equity supporting the development project, the agency said.

Moody's also said it expects that the downtown Las Vegas gaming market will continue to gain in popularity as the quality of gaming and non-gaming options in that market.

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