Eldorado Resorts flexes $425 million term loan to Libor plus 325 bps

By Sara Rosenberg

New York, July 16 – Eldorado Resorts Inc. reduced pricing on its $425 million term loan to Libor plus 325 basis points from talk of Libor plus 375 bps to 400 bps, according to a market source.

The term loan still has 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for one year.

The company’s $575 million credit facility (Ba3/BB-) also includes a $150 million revolver.

J.P. Morgan Securities LLC and Macquarie Capital (USA) Inc. are the lead banks on the deal.

Proceeds will be used to help fund the redemption of the 8 5/8% senior secured notes due 2019 issued by Eldorado and 11˝% senior secured second-lien notes due 2019 issued by MTR Gaming Group Inc., help finance the acquisition of MGM Resorts International’s 50% interest in the Silver Legacy Resort Casino Reno and the assets of Circus Circus Reno and help repay amounts outstanding under the Silver Legacy credit facility.

Eldorado is acquiring the interest in the Silver Legacy Resort Casino Reno and Circus Circus Reno for total consideration of $72.5 million cash, subject to a working capital adjustment. Eldorado already owns the other 50% interest in Silver Legacy.

At March 31, there was about $60 million outstanding under the Silver Legacy credit facility.

Other funds for the transactions will come from $375 million of senior notes due 2023, a roughly $60 million stock sale and cash on hand.

Closing on the acquisitions is expected by year-end, subject to regulatory approvals and other customary conditions.

Eldorado Resorts is a Reno, Nev.-based casino entertainment company.

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