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Eldorado Resorts launches $575 million credit facility to investors
By Sara Rosenberg
New York, July 8 – Eldorado Resorts Inc. launched with its bank meeting on Wednesday a $575 million credit facility (Ba3/BB-), according to sources.
The facility consists of a $150 million revolver and a $425 million term loan.
Price talk on the term loan is Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99.5, sources said.
The term loan has 101 soft call protection for one year.
J.P. Morgan Securities LLC and Macquarie Capital (USA) Inc. are the lead banks on the deal.
Commitments are due on July 16, sources added.
Proceeds will be used to help fund the redemption of the 8 5/8% senior secured notes due 2019 issued by Eldorado and 11½% senior secured second-lien notes due 2019 issued by MTR Gaming Group Inc., help finance the acquisition of MGM Resorts International’s 50% interest in the Silver Legacy Resort Casino Reno and the assets of Circus Circus Reno and help repay amounts outstanding under the Silver Legacy credit facility.
Eldorado is acquiring the interest in the Silver Legacy Resort Casino Reno and Circus Circus Reno for total consideration of $72.5 million cash, subject to a working capital adjustment. Eldorado already owns the other 50% interest in Silver Legacy.
At March 31, there was about $60 million outstanding under the Silver Legacy credit facility.
Other funds for the transactions will come from $375 million of senior notes due 2023, a roughly $60 million stock sale and cash on hand.
Closing on the acquisitions is expected by year-end, subject to regulatory approvals and other customary conditions.
Eldorado Resorts is a Reno, Nev.-based casino entertainment company.
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