Eldorado plans credit facility, notes for Isle of Capri acquisition

By Sara Rosenberg

New York, Sept. 19 – Eldorado Resorts Inc. has received a commitment for a $1.75 billion credit facility and plans on issuing $375 million of eight-year senior notes to help fund its acquisition of Isle of Capri Casinos Inc., according to an 8-K filed with the Securities and Exchange Commission on Monday.

J.P. Morgan Securities LLC is the lead bank on the debt.

The credit facility consists of a $300 million five-year revolver and a $1.45 billion seven-year term loan B.

Net leverage is expected at 5.1 times at closing.

Under the agreement, Isle of Capri is being bought for $23.00 in cash or 1.638 shares of Eldorado common stock, at the election of each Isle of Capri shareholder, reflecting total consideration of about $1.7 billion, inclusive of $929 million of long-term debt of Isle of Capri and its subsidiaries.

Elections are subject to proration such that the outstanding shares of Isle common stock will be exchanged for aggregate consideration comprised of 58% cash and 42% Eldorado common stock.

Closing is expected in the second quarter of 2017, subject to approval of the stockholders of Eldorado Resorts and Isle of Capri, the approval of applicable gaming authorities, the expiration of the applicable Hart-Scott-Rodino waiting period and other customary conditions. The transaction is not subject to a financing contingency.

Eldorado Resorts is a Reno, Nev.-based casino entertainment company. Isle of Capri is a St. Louis-based gaming and entertainment company.

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