Fitch Rates Boyd Gaming's New $4B Credit Facility 'BB'

Business Wire, May 25, 2007

NEW YORK -- Fitch Ratings has assigned a 'BB' rating to Boyd Gaming Corp's (Boyd) new $4 billion credit facility. Boyd's other credit ratings are:

--Issuer Default Rating (IDR) 'BB-';

--Senior subordinated debt 'B '.

The Rating Outlook is Stable.

The new credit facility is secured by the capital stock of Boyd's subsidiaries, a weaker form of collateral than the previous credit facility, which had security in all of Boyd's real and personal property including each of its wholly-owned casino properties.

The new credit facility increased the capacity to $4 billion from $1.85 billion, which will help fund the company's development pipeline. The facility matures on May 24, 2012 and consists of a $4 billion revolver and the option to add $1 billion in the form of a term loan, additional revolver, or both. The new facility gives the company enough liquidity to fund Echelon, its premiere project which is scheduled to break ground on June 19.

Boyd's project pipeline includes:

--$4.5 billion Echelon in Las Vegas ($3.3 billion of which is wholly owned) to open in third-quarter 2010;

--$130 million expansion of Blue Chip in Indiana to open in late 2008;

--a new Dania Jai Alai facility in Florida to open toward the end of 2008;

--a new Las Vegas Locals casino in North Las Vegas;

--the $400 million Water Club expansion at the Borgata to open in early 2008 (although this is being financed at the property level as it is a 50/50 joint venture with MGM MIRAGE).

Variable-rate pricing on the facility will be based upon Boyd's total leverage ratio and range between LIBOR 62.5 basis points (bps) and 162.5 bps. At Boyd's option, it can use an alternative rate of 0 to 37.5 bps above Bank of America's prime rate or the federal funds rate 0.50%.

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