S&P rates Peninsula notes CCC+

Standard & Poor's said it assigned its CCC+ issue-level rating to Peninsula Gaming LLC's planned $350 million senior notes due 2018 to be issued jointly by Boyd Acquisition Sub LLC and Boyd Acquisition Finance Corp.

The recovery rating is 6, indicating an expectation for negligible recovery for noteholders in the event of a payment default. After the completion of the acquisition, Peninsula Gaming LLC and Peninsula Gaming Corp. will be the co-issuers of the senior notes, as the co-issuers listed above will be merged with and into them.

S&P said its B+ corporate credit rating on Peninsula Gaming remains on CreditWatch with negative implications. The CreditWatch listing reflects the agency's expectation that, in the event that Boyd completes its acquisition of the company under the terms proposed, consolidated leverage will exceed 7x over the intermediate term.

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