AMF Bowling launches $230 million term loan at Libor plus 550 bps

By Sara Rosenberg

New York, June 5 - AMF Bowling Centers Inc. (Bowlmor AMF) launched on Wednesday its $230 million 53/4-year first-lien term loan with price talk of Libor plus 550 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year.

Also included in the company's $260 million credit facility is a $30 million five-year revolver.

Covenants are maximum leverage, interest coverage and maximum capital expenditures.

Commitments are due on June 19.

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

Proceeds will be used to repay a debtor-in-possession financing facility and existing bank debt and for general corporate purposes.

Recently AMF Bowling and Strike Holdings LLC (Bowlmor) agreed to merge operations under a second modified joint plan of reorganization filed by AMF and sponsored by AMF's second-lien lenders.

Under the plan, AMF's second-lien lenders will convert their debt into equity in Bowlmor AMF, so that Bowlmor AMF will be owned jointly by the financial institutions that hold AMF's second-lien debt and by equity holders in Bowlmor.

Subject to court approval, AMF's bankruptcy emergence and combination with Bowlmor could be completed by the end of June.

AMF is a Richmond, Va.-based bowling center operator.

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