PITG Gaming upsizes first-lien, downsizes second-lien loan

By Sara Rosenberg

New York, May 29 - PITG Gaming held an update call on Thursday to discuss changes to its credit facility that included increasing the first-lien term loan to $480 million from $380 million and decreasing the second-lien term loan to $150 million from $260 million, according to sources.

Lenders were also told on Thursday that Harrah's Entertainment Inc. is going to be the manager of the new gaming facility.

Pricing on the first-lien term loan is still Libor plus 600 basis points, with a 3.25% Libor floor, and an original issue discount of 94, sources said.

Call protection on the first-lien term loan is non-callable for 2½ years, then at 102, 101.

Pricing on the second-lien term loan remained at Libor plus 1000 bps cash plus 500 bps PIK, with a 3.25% Libor floor and an original issue discount of 92, sources continued.

Call protection on the second-lien term loan is now non-callable for 2½ years, then at 109, 107, 105.

Second-lien lenders are being offered warrants for 5% of the company's equity.

Sources said that Apollo Management is going to take down half of the second-lien loan.

PITG Gaming's now $640 million credit facility, down from $650 million, also includes a $10 million revolver priced at Libor plus 600 bps, with a 3.25% Libor floor.

Credit Suisse is the lead bank on the deal.

Proceeds will be used to help fund the Pittsburgh casino. Construction started in December and the grand opening is projected for May 2009.

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