Maverick Gaming increases term loan B amount to $310 million

By Sara Rosenberg

New York, Aug. 19 – Maverick Gaming LLC upsized its five-year covenant-lite term loan B (B3/B-) to $310 million from $300 million, according to a market source.

Pricing on the term loan is Libor plus 750 basis points with a 50 bps step-down when first-lien net leverage is less than 3.75x, a 1% Libor floor and an original issue discount of 98.

The term loan is non-callable for one year, then has hard call protection of 102 for one year and 101 for six months.

The company’s now $365 million of credit facilities also include a $55 million revolver, which was upsized previously from $50 million.

Earlier in syndication, pricing on the term loan firmed at the high end of the Libor plus 725 bps to 750 bps talk, the step-down was revised from when first-lien net leverage is less than 4x, the call protection was changed from non-callable for one year, then a 101 hard call for one year and the maturity was shortened from seven years.

Also previously, the company made changes to documentation including to fixed incremental amount, incremental ratio debt, MFN, consolidated EBITDA, excess cash flow sweep, sale leasebacks, general debt basket, purchase money & capital lease obligations basket, general liens basket, general investment basket, investments in non-loan parties, non-guarantor cap on permitted acquisitions, investments in unrestricted subsidiaries, investment ratio, initial restricted payment base amount, available amount governor for restricted payments and RDP, restricted payment ratio, restricted debt prepayments ratio and reporting.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC and Jefferies LLC are the leads on the deal.

Proceeds will be used to refinance the company’s existing capital structure. The incremental proceeds from the term loan upsizing will be used to repay other existing debt and for transaction fees and expenses, the source added.

Maverick Gaming is a Kirkland, Wash.-based owner and operator of regional casinos and cardrooms.

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