Yesterday Station Casinos announced that it was drawing down $239 million of its revolving credit line. According to a filing with the SEC, the casino asked for the remaining $257 million available under its revolving credit facility and as of last Friday $239 million of that had been funded. The money will be used for general corporate purposes.
Standard and Poor’s reported that Station’s bonds were “fairly active” relative to the rest of the high-yield market following the announcement. The company’s 7.75% notes due in 2016 were trading as low as 19.25 yesterday morning, down over three points from last week. The casino’s 6% notes due in 2012 were also down over three points from Friday at 20 according to the report.
The news come on the heels of the failure of the company’s proposed distressed-debt exchange last week. The deal failed to garner the necessary support of 60% of bondholders despite two extensions prior to cancellation. The deal offered bondholders the opportunity to exchange their bonds for new 10% secured term loans due in 2016 in order to reduce overall debt.