Dave & Buster's launches $160 million facility at Libor plus 275 bps

By Sara Rosenberg

New York, Feb. 10 - Dave & Buster's Inc. launched its $160 million credit facility with opening price talk of Libor plus 275 basis points on all tranches, according to a market source.

Tranching on the facility is comprised of a $100 million term loan and a $60 million revolver, the source said.

JPMorgan is the lead bank on the deal that was launched into syndication with a bank meeting held on Thursday.

Proceeds from the credit facility, along with an equity contribution from Wellspring Capital Management LLC and senior unsecured debt securities, will be used to fund the leveraged buyout of Dave & Buster's and to refinance any debt that may become due as a result of the LBO.

Under the transaction agreement, Wellspring will acquire all of Dave & Buster's outstanding shares for $18.05 per share in cash. The total transaction value is about $375 million, including the assumption of Dave & Buster's debt.

Completion of the transaction, which is expected for the second quarter, is subject to customary conditions and regulatory approvals, and the approval of Dave & Buster's shareholders. Financing is not a condition of the acquisition.

Dave & Buster's is a Dallas-based operator of upscale restaurant/entertainment complexes.

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