Affinity Gaming to redeem 9% notes with proceeds from new loans

New York, June 2 – Affinity Gaming said that it plans to call its $200 million of 9% senior notes due 2018 using proceeds from a new financing and cash on hand.

The company will also repay its existing $180 million secured term loan.

Funding will come from a $300 million term loan B and a $75 million revolver plus $90 million of cash on hand.

Total leverage will decline to 4.2x from 5.3x as a result of the refinancing.

Credit Suisse, Macquarie Capital and Fifth Third Bancorp will be joint lead arrangers and Credit Suisse will be administrative agent.

“Over the last two years, we have executed on a strategic plan aimed at significantly improving the company’s operating trajectory and margins,” said chief financial officer Walter Bogumil in a new release.

“In addition, a significant priority for the company has been to simplify our capital structure and de-lever the business. The expected refinancing announced today will satisfy both of these objectives by reducing gross leverage, materially reducing interest expenses and improving our cash flow profile.”

Affinity Gaming is a Las Vegas-based gaming company.

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