Business

Midwest Gaming seeks $120 million financing for Des Plaines casino

Posted March 26, 2010 11:00 pm

Bloomberg News

Artist rendering of the proposed Des Plaines casino Courtesy of Midwest Gaming & Entertainment

Midwest Gaming Borrower LLC, the owner of the exclusive rights to build a casino in Des Plaines, is seeking $120 million in a first-lien credit pact to fund construction, according to Moody's Investors Service.

The agreement will consist of a $10 million first-lien revolving line of credit and a $110 million first-lien delay- draw term loan, both due in 2015, the New York-based credit rating company said today in a report.

Moody's assigned a Ba3 rating to the loans, according to the report. Proceeds from the transaction and a proposed $175 million second-lien secured note offering, will be used to finance the $445 million casino, Moody's said. Construction is set to start in April and a September 2011 opening is planned.

Midwest Gaming should be able to maintain debt to earnings before interest, taxes, depreciation and amortization at no higher than 5 times, Moody's said.

An artist rendering of the proposed Des Plaines casino. Courtesy of Midwest Gaming & Entertainment

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