Fitch Ratings assigns a 'BBB' rating to Seminole Tribe of Florida's (STOF) proposed $395 million incremental term loan B. Fitch also upgrades STOF's Issuer Default Rating (IDR) to 'BBB-' from 'BB+', the gaming division's parity debt to 'BBB' from 'BBB-' and the tribe's special obligation bonds to 'BBB-' from 'BB+'. The Rating Outlook is revised to Stable from Positive. A full list of rating actions follows at the end of this release. The proposed term loan will be pari passu with STOF's existing term loan and gaming enterprise revenue bonds and will be secured by a revenue pledge of STOF's gaming operations, which include six major casinos in the state of Florida with nearly 12,500 slot machines and approximately 340 table games. The proposed term loan will amortize at a rate of 10% per year with a balloon payment in 2017 of approximately $237 million. The proceeds will be used to repay $367 million in outstanding 2010 bonds and pay associated fees including $21 million in call premiums. The term loan is being issued pursuant to the accordion option on the existing term loan, which permits STOF to issue incremental loans as long as pro forma net leverage remains at or below 2x, or up to $500 million, whichever is greater.Get the Story:
Press Release: Fitch Rates Seminole's $395MM Incremental Term Loan 'BBB'; Upgrades IDR to 'BBB-' (Fitch Ratings 10/8)
Join the Conversation
