Moody’s rates WarHorse B3, loans Ba3, B3

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to WarHorse Gaming, LLC. A Ba3 rating was assigned to the company's planned $20 million five-year super-priority senior secured revolving credit facility and a B3 rating to the proposed $300 million secured term loan. The outlook is stable.

“WarHorse's B3 corporate family rating reflects the ground-up, debt-financed nature of the two casino development projects, ramp-up risk associated with most new casino projects, and limited diversification. In the B3 rating, Moody's also takes into consideration the competitive market in which WarHorse will be operating, which includes three commercial casinos in Council Bluffs, Iowa. Moody's expects leverage of about 3.5x debt/EBITDA at the end of its first full year of operations (June 2026),” Moody’s said in a press release.

WarHorse will use the proceeds from the revolver, the term loan, along with other cash sources will be used to fund the construction of two casino properties, fund a contingency, interest reserve, provide excess cash, and pay related fees and expenses.

“The stable rating outlook reflects Moody's expectation that WarHorse will have sufficient funds to complete construction and commence operations, with the appropriate level of contingency reserves typically provided for this type of development project,” the agency said.

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