S&P rates Century Casino loans BB-, B

S&P said it gave Century Casinos Inc.’s planned $350 million first-lien term loan due 2029, B issue and 3 recovery ratings and BB- and 1 recovery ratings to its proposed $30 million super-priority revolving credit facility due 2027.

Century will use the proceeds to finance its acquisition of 50% of Smooth Bourbon LLC, which owns the land and building underlying the Nugget Casino Resort (Opco), and 100% of Opco, as well as to fund development capital expenditure (capex) and refinance its capital structure.

“Pro forma for the acquisition, we expect the company's S&P Global Ratings lease-adjusted debt to EBITDA to increase to the high-5x to low-6x range in 2022, from about 5x in 2021, which will provide it with some cushion relative to our 6.5x downgrade threshold at the current rating,” S&P said in a press release.

The agency affirmed Century’s B issuer rating, and the outlook remains stable.

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