Moody's continues review of Galaxy Casino

Moody's Investors Service said that it will continue to review the B1 corporate family rating and senior unsecured rating of Galaxy Casino SA for possible downgrade.

The review status will continue after news that the company has commenced voluntary tender offers to purchase for cash all of its $250 million fixed-rate notes due 2010 and up to $100 million of the fixed-rate bonds due 2012 at deep discount to the face value, Moody's said.

A successful buyback of the notes and bonds would lower Galaxy's debt and interest burden in the near term, partly mitigating the impact on Galaxy's financial metrics of the delay in the opening of the Cotai Mega Resort project, the agency said.

On the other hand, the buyback signals a high likelihood of further delay in the opening of the Mega Resort and the resultant cash flow generation, Moody's said. The agency said it expects Galaxy will need additional financing to cover the short fall arising from the further delay.

© 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.