Rivers Pittsburgh seeks term loan A upsizing, may downsize bonds

By Sara Rosenberg

New York, May 23 - Rivers Pittsburgh Borrower LP is out to lenders with an upsizing of its term loan A to $185 million from $160 million as the debt is oversubscribed, according to a market source.

It is expected that the company's seven-year senior secured second-lien notes offering will be reduced to somewhere in the area of $275 million to $280 million as a result of the proposed increase to the term loan A amount, the source said.

Price talk on the term loan A, as well as on a $15 million revolver, is Libor plus 375 basis points (no grid), with the revolver having a 50 bps unused fee.

Recommitments from bank lenders are due at the end of the day on Thursday, the source added.

Wells Fargo Securities LLC is the lead bank on the potentially $200 million five-year credit facility (B1/BB-) that was launched with a bank meeting on May 2.

Proceeds from the new debt and cash on hand will be used to refinance $302 million of first-lien debt and about $184 million of senior preferred PIK interests.

Rivers Pittsburgh is a Pittsburgh-based casino operator.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.