Golden Nugget finalizes term loan amount at $3.3 billion

By Sara Rosenberg

New York, Jan. 13 – Golden Nugget LLC (Fertitta Entertainment LLC) scaled back its seven-year first-lien term loan to $3.3 billion from a revised amount of $3.45 billion, but the loan is still larger than its initial launch size of $1.85 billion, according to a market source.

Pricing on the term loan is SOFR+CSA plus 400 basis points with two leverage-based step-downs, a 0.5% floor and an original issue discount of 99.75.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for six months.

Previously in syndication, the discount on the term loan was tightened from 99.5.

The company’s now $3.8 billion of credit facilities also include a $500 million five-year revolver.

Jefferies LLC, Deutsche Bank Securities Inc., Rabobank, Capital One, Citigroup Global Markets Inc., Citizens Bank, KeyBanc Capital Markets, Morgan Stanley Senior Funding Inc., Truist and PNC are the lead arrangers on the deal.

Proceeds will be used to help refinance about $4.6 billion of existing debt, including 6.75% senior notes due 2024 and 8.75% senior subordinated notes due 2025, to pay fees and expenses related to the transactions and for general corporate purposes.

Other funds for the refinancing will come from $1 billion of senior secured notes, upsized from a revised amount of $850 million but downsized from an initial amount of $1.85 billion, and $1.25 billion of senior unsecured notes, which were downsized from $1.85 billion.

Golden Nugget is a Las Vegas-based diversified restaurant, hospitality, entertainment and gaming company.

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