DBRS Finalizes Provisional Ratings on River Cree Enterprises Limited Partnership

DBRS has today finalized the provisional issuer rating of BB (low) on River Cree Enterprises Limited Partnership (River Cree or the Company) and the B (high) rating on its Senior Secured 2nd-Lien Notes (the Notes). After its review of all documentation associated with the recent offering, DBRS has confirmed that the terms of the issuance of the Notes were largely consistent with those contemplated at the time the provisional rating was assigned on November 25, 2013. DBRS notes that River Cree will not proceed with the $55 million Delayed Draw Term Loan. While this change has a slightly positive impact on the credit quality of River Cree and the recovery prospects of the Notes, there is no impact on the ratings at this time.

The aggregate gross proceeds from the Notes totalled $200 million. The Notes mature January 20, 2021, and bear interest at a fixed annual rate of 11%. Proceeds from the Notes, along with the new $45 million Term Facility, will be mainly used to purchase Paragon Gaming’s 40.9% equity interest, repay existing indebtedness and pay a one-time cash distribution of $4 million.

For additional information on DBRS’s view of the credit quality of River Cree, or its recent debt issuance, please refer to the DBRS report dated November 25, 2013.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are Rating Companies in the Gaming Industry and DBRS Recovery Ratings for Non-Investment Grade Corporate Issuers, which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.