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Most Recent Online Casino News
S&P Rats American Casino &
Entertainment Notes
NEW YORK, Jan 9 - Standard & Poor's Ratings Services
assigned its 'B' rating to the proposed $200 million senior
secured notes due 2012 to be issued jointly by American Casino
& Entertainment Properties LLC (ACEP) and its wholly owned
subsidiary American Casino & Entertainment Properties Finance
Corp. The notes will be secured by substantially all current
and future assets of the company; however, its $20 million
proposed bank facility will benefit from a priority lien.
At the same time, a 'B' corporate credit rating was
assigned to ACEP. Pro forma for the transaction, Las
Vegas-headquartered casino owner and operator will have $201
million in total consolidated debt outstanding. The outlook is
positive.
The proceeds from the above transaction will be used to
finance the acquisition of two Las Vegas-based casinos, repay
intercompany indebtedness of one of the contributed entities,
to fund distributions to ACEP's direct parent, and to pay
related fees and expenses.
The ratings on ACEP reflect the entity's portfolio of
second-tier assets, reliance on a single market, the
disadvantaged northern Strip location of its largest cash flow
generating entity (The Stratosphere Casino, Hotel and Tower),
the fact that one of the properties has been unprofitable for
the past few years, and a relatively small cash flow base.
These factors are tempered by a healthy 'locals' market in Las
Vegas, a stable regulatory environment in Nevada, good credit
measures for the rating, and expected adequate liquidity upon
closing of the transaction.
Read the
entire article at:
Reuters.Com
2004 Online Casino News Archive
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