Dave & Buster's pulls $155 million deal that priced June 28

By Paul A. Harris

St. Louis, Mo., July 15 - Following close upon an announcement that it had increased its tender offer for all the shares of Dave & Buster's on Monday, D&B Acquisition Sub, Inc. announced it had pulled its offering of $155 million of seven year senior secured notes which priced on June 28, via UBS Warburg and Deutsche Bank Securities.

The bond deal, which priced June 28, had been scheduled to settle Monday but instead the company said it would not be completing the transaction.

Proceeds from the offering were to be used to fund a portion of the acquisition of Dave & Busters from Investcorp.

"The investors couldn't take on the risk of significant additional interest cost over the holding period before the deal closes," said company spokesman Todd Fogarty. "And given that it's still dependent on shareholder vote the investors declined to take down the bonds today.

"They will revisit financing down the road."

Earlier the company announced that it had increased to $13.50 (from $12) in cash per share the offer for all of the shares of Dave & Buster's, Inc.

A Monday press release announced that the company "has exercised its right to not close on the bond offering today because it did not receive 66-2/3 percent of the shares tendered at the expiration of the tender offer as outlined in the senior notes offering memorandum."

Shareholders representing at least 66 2/3% of Dave & Buster's outstanding common stock must vote in favor of the merger for it to be completed, the release added.

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