CBAC Borrower LLC's Proposed $315 Million Senior Secured Credit Facility Rated 'B' (Recovery Rating: 2)

NEW YORK (S&P Global Ratings) June 13, 2017--S&P Global Ratings today assigned its 'B' issue-level rating and '2' recovery rating to Baltimore-based casino operator CBAC Borrower LLC's proposed $315 million senior secured credit facility, comprised of a $300 million term loan B due 2024 and a $15 million revolver due 2022. The '2' recovery rating reflects our expectation for substantial (70%-90%; rounded estimate: 70%) recovery for lenders in the event of a payment default. CBAC plans to utilize proceeds from the proposed transaction, along with about $25 million of excess cash on hand, to repay its existing term loan and furniture, fixtures and equipment loan and to pay call premiums, fees, and expenses associated with the transaction. We intend to

...NEW YORK (S&P Global Ratings) June 13, 2017--S&P Global Ratings today assigned its 'B' issue-level rating and '2' recovery rating to Baltimore-based casino operator CBAC Borrower LLC's proposed $315 million senior secured credit facility, comprised of a $300 million term loan B due 2024 and a $15 million revolver due 2022. The '2' recovery rating reflects our expectation for substantial (70%-90%; rounded estimate: 70%) recovery for lenders in the event of a payment default. CBAC plans to utilize proceeds from the proposed transaction, along with about $25 million of excess cash on hand, to repay its existing term loan and furniture, fixtures and equipment loan and to pay call premiums, fees, and expenses associated with the transaction. We intend to withdraw our issue-level and recovery ratings on the company's existing rated debt issues once they are fully repaid. Although we expect the proposed refinancing transaction to improve cash flow available for debt repayment and EBITDA coverage...

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