Lago Resort cuts first-lien term loan to $225 million, updates pricing

By Sara Rosenberg

New York, Feb. 19 – Lago Resort & Casino LLC reduced its six-year first-lien term loan (B2/B+) to $225 million from $240 million and set pricing at Libor plus 950 basis points, the high end of the Libor plus 900 bps to 950 bps talk, according to a market source.

As before, the first-lien term loan has a 1% Libor floor and an original issue discount of 98.

The first-lien term loan is still non-callable for two years, then at 102 in year three and 101 in year four.

Pricing on the company’s $85 million 6.5-year second-lien term loan (Caa2/CCC+) firmed in line with talk at a fixed-rate of 14% with a discount of 97.25.

The second-lien term loan is non-callable for two years, then at 104 in year three and 102 in year four.

Financial covenants include maximum leverage, minimum interest coverage, minimum EBITDA and maximum capital expenditures.

Credit Suisse Securities (USA) LLC is the lead bank on the $310 million of term loans.

Proceeds will be used to fund the development of the Lago Resort & Casino, which is located in Tyre, Seneca County, between Rochester and Syracuse, N.Y.

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