Circa Resort & Casino scales back term loan size to $450 million

By Sara Rosenberg

New York, June 27 – Circa Resort & Casino (18 Fremont Street Acquisition LLC) downsized its six-year first-lien term loan to $450 million from $550 million, according to a market source.

In addition, the Libor floor on the term loan was increased to 1.5% from 0%, the source said.

The term loan is still priced at Libor plus 800 basis points with an original issue discount of 98 and is still non-callable for 1.5 years, then at 102 for a year and 101 for a year.

Covenants include maximum leverage, maximum capital expenditures and minimum EBITDA.

Credit Suisse Securities (USA) LLC is the lead arranger on the deal. Valtus Capital is the documentation agent.

Commitments are due at noon ET on Monday, the source added.

Proceeds will be used to fund the construction of the Circa Resort in Las Vegas.

Additional equity will be used for the transaction as a result of the term loan downsizing.

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