Montreign readies launch of $400 million term loan for Tuesday

By Sara Rosenberg

New York, May 6 – Montreign Operating Co. LLC is scheduled to hold a bank meeting at 10:30 a.m. ET in New York on Tuesday to launch a $400 million six-year first-lien term loan, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Price talk on the term loan is Libor plus 850 basis points to 900 bps with a 1% Libor floor and an original issue discount of 98, the source said.

The term loan is non-callable for three years, then at 102 in year four and 101 in year five.

Covenants include a maximum leverage ratio, a minimum interest coverage ratio and maximum capital expenditures.

Proceeds will be used to fund the development of the Montreign Resort Casino in the Hudson Valley region in New York.

Commitments are due on May 20, the source added.

Montreign Operating is a casino operator in the Hudson Valley.

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