Moody's rates Premier Entertainment notes B3

Moody's Investors Service assigned a B3 rating to Premier Entertainment Biloxi LLC's and Premier Finance Biloxi Corp.'s proposed $150 million first mortgage notes due 2012.

Moody's also assigned a B3 senior implied rating and a Caa2 senior unsecured issuer rating.

The outlook is stable.

Proceeds from the offering along with $50 million of equity, a $10 million junior subordinated note, and $25 million furniture, fixture and equipment financing will be used to construct the Hard Rock Hotel & Casino Biloxi located in Biloxi, Miss. The Hard Biloxi is expected to open in the third quarter of 2005.

Moody's said the ratings take into account the start-up and single asset nature of the project, and the issuer's considerable debt burden. Pro forma annual interest expense is expected to be about $18 million, or about 7.6% of the total expected project investment of $235 million.

Positive rating consideration is given to the $50 million preferred equity contribution from AA Capital Partners Inc., a private equity firm, and the project's affiliation with the well-established Hard Rock brand name.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.