Isle of Capri Casinos expecting to amend and restate credit facility via CIBC

By Sara Rosenberg

New York, March 22 - Isle of Capri Casinos Inc. is hoping to amend and restate its current $620 million credit facility, according to a source close to the deal. CIBC is the lead arranger for the new $500 million credit facility. A bank meeting is expected to be held during the first week of April and closing is hoped for by the end of April.

The amended and restated credit facility will consist of a $250 million revolver that would mature on the fifth anniversary of the closing date and a $250 million term B that would mature on the sixth anniversary of the closing date.

According to the source, this transaction is simply "opportunistic financing" - since interest rates on the new facility would be lower than those on the current loan - to complete the company's refinancing.

The credit facility is a follow-up to the company's pricing of $200 million of senior subordinated notes on Thursday, which are being used to reduce bank debt. The notes are due March 15, 2012 (B2/B) and were priced at par to yield 9%.

Moody's Investors Service rates the new loan Ba3 and Standard and Poor's rates it BB-.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.