S&P gives Spectacle Gary loans BB-, B

S&P said it gave Spectacle Gary Holdings LLC’s planned $35 million revolver and $415 million term loan, BB- and 1 recovery ratings and B and 3 recovery ratings, respectively, to help refinance its debt. The company plans to rename itself HRNI Holdings LLC for Hard Rock Northern Indiana.

“The proposed refinancing should accelerate debt repayment, improving Spectacle's cushion to withstand a moderate potential EBITDA decline from new competition and maintain adjusted leverage under 5x. Although the proposed financing transaction is largely debt for debt, we view it as a credit positive since we expect it to accelerate debt reduction over time,” S&P said in a press release.

The agency also revised the company’s outlook to positive from stable and affirmed the B issuer rating, citing the benefits of the refinancing.

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