Moody’s rates Eldorado notes B1, Caa1

Moody’s Investors Service said it assigned a B1 rating to Eldorado Resorts Inc.’s proposed $3.08 billion of senior secured notes and a Caa1 rating to the company’s proposed $1.875 billion of senior unsecured notes.

The agency also downgraded Eldorado Resorts, Inc.’s corporate family rating to B2 from B1 and probability of default rating to B2-PD from B1-PD.

At the same time, Moody’s assigned a B1 rating to the Caesars Resorts Collection LLC’s proposed $1.47 billion senior secured term loan B and $1.05 billion of senior secured notes.

Moody’s additionally downgraded Caesars’ corporate family rating to B2 from B1 and probability of default rating to B2-PD from B1-PD. The company’s senior secured revolving credit facility and term loan B were downgraded to B1 from Ba3 and existing senior unsecured notes to Caa1 from B3.

Proceeds from the notes and loans will be used to help finance Eldorado’s acquisition of Caesars Entertainment Corp., refinance debt at Caesars Entertainment Op Co LLC, CRC's sister company, as well as pay related fees and expenses.

The downgrade of the Eldorado and CRC to B2 considers the increase in debt to support the acquisition of, including the risks associated with integration and execution of the acquisition. The downgrade also reflects the disruption in casino visitation resulting from efforts to contain the pandemic, Moody’s said.

The outlook for Eldorado and Caesars was changed to negative.

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