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Herbst Gaming new credit facility to be sized at $875 million
By Sara Rosenberg
New York, Nov. 13 - Herbst Gaming Inc. revealed that it will be getting a new $875 million senior secured credit facility in connection with its previously announced acquisition of some MGM Mirage assets and its newly announced acquisition of The Sands Regent in Reno, Nev., according to a company news release.
Lehman Brothers and Wachovia are the lead banks on the deal.
The facility consists of a revolver, a term loan and a delayed-draw term loan.
Herbst is buying the Sands for about $139 million and MGM Mirage's Buffalo Bill's, Primm Valley and Whiskey Pete's hotel-casinos, which are located in Primm, Nev., for $400 million.
The Sands transaction is expected to close in early January and the Primm transaction is expected to close by the end of the first quarter of 2007, subject to customary closing conditions, including receipt of necessary regulatory and governmental approvals.
In addition to helping fund the acquisitions, the new credit facility will also refinance existing bank debt and be used for working capital and general corporate needs.
Herbst is a Las Vegas-based slot route operator.
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