Full House restates first- and second-lien debt totaling $100 million

By Wendy Van Sickle

Columbus, Ohio, May 13 – Full House Resorts amended and restated its first- and second-lien debt, for total debt financing of $100 million, according to a Friday press release.

The debt consists of $45 million of first-lien debt, including an undrawn $2 million revolving credit facility, and an upsized $55 million of second-lien debt.

The company’s first-lien credit facility matures May 13, 2019. Its interest rate continues to be Libor plus 375 basis points with a 1% Libor floor.

Accounting for the possibility that the first-lien facility may be extended, the second-lien credit facility matures the earlier of May 13, 2022 or six months after the maturity of the first-lien facility. Given the current first-lien maturity date, the current second-lien maturity date as is effectively in November 2019.

The interest rate for the second-lien credit facility was reduced to 13.5% from 14.25%, and it can decrease further depending on the company’s total leverage ratio.

The second-lien lender also received a 10-year right to purchase about 1 million shares, or 5% of the company’s shares on a fully-diluted basis, exercisable at the stock’s volume-weighted average trading price for a 60-day period bracketing Friday.

The company used some proceeds of the refinanced credit facilities for its concurrent $30 million acquisition of Bronco Billy’s Casino and Hotel in Cripple Creek, Colo.

Full House is a Las Vegas-based owner, developer and manager of gaming facilities.

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