The struggling SLS, which has not gone toe to toe with other Strip properties as hoped for, has caught a break by refinancing debt on the property. Stockbridge Capital Partners, a San Francisco-based investor that controls the property, has struck a deal with lender Mesa West Capital for a loan to the sum of 5 million. 2.5 million of existing debt will be paid off with the refinancing.
Standard & Poor’s Rating Services warned that Stockbridge avoided catastrophe when it risked missing certain financial targets last month, which might have caused a default. Mesa West is lending at a rate near 8.5%, quite a step up from the borrowing rate of 13% that Stockbridge was paying on a loan which is now retired.
S&P last month said in a report that SLS Las Vegas had “significantly weaker-than-expected operation performance.” The report continued, saying the property “will have difficulty ramping up quickly enough … to cover its fixed charges.”
