S&P rates Caesars loans B+, B-

Standard & Poor's said it assigned a B- corporate credit rating to Caesars Growth Properties Parent LLC.

The agency also said it assigned a B+ rating to Caesars Growth Properties Holdings LLC's proposed $1.325 billion senior secured credit facility with a recovery rating of 1, indicating 90% to 100% expected default recovery.

The credit facility is comprised of a $150 million revolver due 2019 and a $1.175 billion term loan due 2021.

S&P said it assigned a B- rating to Caesars Growth's proposed $675 million second-lien notes with a recovery rating of 4, indicating 30% to 50% expected default recovery.

The outlook is stable.

The proceeds, along with an additional cash equity contribution and cash on the balance sheet, will be used to complete the acquisition of four casino properties, prefund some of the capital expenditures associated with the renovation of the Quad casino and refinance outstanding debt at Planet Hollywood, S&P said.

The company's business risk profile is considered fair, reflecting the company's limited geographic diversity outside Las Vegas, highly competitive dynamics in the Las Vegas market, weaker asset quality compared with peers and high levels of anticipated cash flow volatility, the agency said.

The company has a leading market position in the New Orleans market, an ability to invest in and improve the quality of its portfolio of assets, S&P said.

© 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.