Bank of America and Wells Fargo Bank are in the market with a $250 million financing for Green Valley Ranch Gaming. The credit comprises a five-year, $100 million revolver and a seven-year, $150 million "B" loan, according to Glenn Christenson , executive v.p. and cfo of Station Casinos . Station Casinos owns 50% of Green Valley Ranch and has a management contract to operate the casino resort and spa. Christenson is also senior v.p. and cfo of Green Valley Ranch.
The new facility will be used to finance the construction of a $115 million expansion project and refinance existing debt and equipment leases. The project will add 296 rooms, 25,000 feet of convention space and expand the spa facilities. Green Valley Ranch has been doing business with B of A and Wells Fargo for around 15 years, Christenson said. The company also has longstanding relationships with Lehman Brothers , Deutsche Bank and Bank of Scotland , which will be involved in the facility, he added. Christenson said the company is in the process of finalizing the spread.
Moody's Investors Service has assigned a B1 rating to the facility, reflecting the company's single asset profile, increased near-term leverage and construction and delay risks typical of this kind of project. Peak leverage over the construction period is estimated to be around 4.4 times on a debt-to-EBITDA basis and about four times on a debt-to-EBITDA before management fee basis. A representative from B of A declined comment. Calls to Wells Fargo bankers were not returned.