PITG Gaming to launch $630 million credit facility on Friday

By Sara Rosenberg

New York, April 16 - PITG Gaming is scheduled to hold a bank meeting on Friday to launch its proposed $630 million credit facility, according to a market source.

Credit Suisse is the lead bank on the deal.

The facility consists of a $10 million revolver talked at Libor plus 600 basis points, a $370 million first-lien term loan talked at Libor plus 600 bps and a $250 million second-lien term loan talked at Libor plus 1300 bps, of which 1000 bps is cash and 300 bps is PIK, the source said.

The first-lien term loan is being offered at an original issue discount in the 96 to 97 area and the second-lien term loan is being offered at a discount of 96, the source continued.

Call protection on the first-lien term loan is non-callable for 18 months, then at 102 for a year and at 101 for a year, and call protection on the second-lien term loan is non-callable for two years, then at 106 for a year, at 104 for a year and at 102 for a year.

The facility has a 3.25% Libor floor.

Proceeds will be used to help fund the Majestic Star Casino LLC's Pittsburgh casino. Construction started in December and the grand opening is projected for May 2009.

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