$4.4 billion in liabilities<\/a> against $831 million in cash. While that liquidity position is set to approach or top $1.2 billion with news of the note sale, the bulk of it is derived from capital raises or drawing on credit revolvers, not generated via free cash flow.<\/p>\nHow the Ratings Could Look<\/h2>\n
Ratings agencies haven’t yet chimed in on Boyd’s private placement, and there’s no guarantee that will happen. But the company’s overall credit mark is in junk territory.<\/p>\n
Citing concerns about the COVID-19 shutdown, Moody’s Investors Service lowered its grade on Boyd in late March to \u201cB2\u201d from \u201cB1\u201d with a negative outlook<\/strong>.<\/p>\n\u201cThe downgrade of Boyd’s corporate family rating (CFR) is in response to the disruption in casino visitation resulting from efforts to contain the spread of the coronavirus including recommendations from federal, state, and local governments to avoid gatherings and avoid non-essential travel,\u201d said the ratings agency. \u201cThese efforts include mandates to close casinos on a temporary basis. The downgrade also reflects the negative effect on consumer income and wealth stemming from job losses and asset price declines, which will diminish discretionary resources to spend at casinos once this crisis subsides.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Boyd Gaming (NYSE:BYD) is bolstering its balance sheet, but investors aren’t enthusiastic about the news. The regional operator’s stock is lower by seven percent Wednesday after the company said it sold $500 million worth of notes in a private placement. The Orleans operator sold $500 million in senior notes maturing in 2025. Las Vegas-based Boyd […]<\/p>\n","protected":false},"author":46,"featured_media":135673,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\n
Boyd Gaming Slides on News It's Selling $500 Million in Debt<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n