Station Casinos has announced it is drawing down the remainder of its revolving credit in a move bond analysts say could indicate a restructuring of the company that could include a bankruptcy filing.
The locals gaming company requested the remaining $257 million remaining in the credit facility Friday, with $239 million of the request funded that day, according to a Monday filing with the Securities and Exchange Commission.
Barbara Cappaert, a bond analyst with KDP Investment Advisors, said the money was taken out in anticipation of access the money being cut if the company defaults on its bank covenants before the end of the month, which is anticipated.
“The move was not surprising given the potential covenant violations Station faces,” Cappaert wrote in an investors note. “We seen this as a first move in what could likely be a series of moves toward a restructuring of the company’s onerous debt load.”