S&P ups Centaur some loans to B-

Standard & Poor's said it revised Centaur LLC's planned senior secured second-lien term loan as a result of changes to the previously announced debt structure.

The company is reducing its senior secured first-lien credit facilities to $595 million and increasing the second-lien term loan to $180 million.

The issue rating on the second-lien term loan was raised to B-, one notch lower than the B corporate credit rating, from CCC+. At the same time, the rating on the first-lien credit facilities was affirmed at BB-.

The outlook is stable.

Proceeds will be used for the development of the company's proposed gaming facilities in Indiana and Pennsylvania, as well as for general corporate purposes.

The corporate credit rating reflects the company's pro forma high debt leverage, heavy interest burden, construction and startup risks, and a high level of competition in existing and proposed markets, the agency said.

These factors are partially tempered by adequate construction-related contingencies, a satisfactory interest reserve account and revolver availability as well as the relatively good locations of the proposed facilities, S&P said.

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