Why Shares of Eldorado Resorts Popped 12% in September

Shares of Eldorado Resorts (NASDAQ: ERI) jumped 11.5% in September, according to data provided by S&P Global Market Intelligence, after the company was upgraded by a rating agency and announced a well-priced debt offering. Since debt fuels the gaming industry, both moves are positive developments for investors.

The upgrade came from Moody's, which increased its rating on the company's senior secured bank loan from Ba3 to Ba2 in response to the latest debt offering. That offering was $500 million of senior unsecured notes due 2025, which hold an interest rate of 6% and were sold to investors for 105.5% of their face value. The result is an implied interest rate of about 5.7%.

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Source: Fool.com