SugarHouse keeps junk debt rating in proposed refinancing

20170106_inq_gamble06-a
Moody's maintained a junk debt rating on a proposed SugarHouse refinancing.

Moody's Investors Service on Thursday praised SugarHouse Casino's proposed refinancing of $349 million in debt as a credit positive because it will extend the Fishtown casino's debt deadlines, but still gave the new borrowings a low-junk rating because of hight-debt levels.

The B3 rating on $300 million of senior secured notes and the higher B2 rating on a $95 million revolving credit facility "considers the risk of new supply opening within Philadelphia in the next few years," Moody's said in a reference to the planned casino in South Philadelphia's Stadium District.

That project, Live! Hotel & Casino, to be developed by Cordish Cos. of Baltimore and the owners of Parx Casino in Bensalem, has been stalled by a Pennsylvania Supreme Court appeal by Market East Associates LP, which wanted to put a casino at Eighth and Market Streets in Center City.

Moody's maintained its B2 corporate credit rating on SugarHouse, which had $306 million in net revenue last year. That compares to $280 million in net revenue in 2012, according to a 2013 Moody's report.

We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue
Help us moderate this thread by flagging comments that violate our guidelines

Comment policy:

Philly.com comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by Philly.com staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Load comments
Continue Reading