Argosy Gaming seeks amendment to lower term loan interest rate by 50 basis points

By Sara Rosenberg

New York, Dec. 2 - Argosy Gaming Co. is looking to amend its credit facility (Ba2) to lower pricing on the existing term loan to Libor plus 225 basis points from Libor plus 275 basis points, according to a fund manager. Wells Fargo is the agent on the loan.

Furthermore, the amendment would contain a provision allowing the company to lower pricing even further to Libor plus 200 basis points, if there is an upgrade in ratings, the fund manager added.

Responses by lenders are due by Friday.

If any lenders do not want to agree to the amendment they will be repaid at par through the "yank the bank" clause, according to the fund manager.

There is $269 million outstanding on the term loan. The company also has a $400 million revolver with a current interest rate of Libor plus 262.5 basis points, which will stay as is.

Argosy Gaming is an Alton, Ill., owner and operator of riverboat casinos.

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