Chester Downs and Marina launches $230 million seven-year term loan

By Sara Rosenberg

New York, July 8 - Chester Downs and Marina LLC held a conference call at 2 p.m. ET on Wednesday to launch its proposed $230 million seven-year secured term loan (B3/B), according to a market source.

Citigroup, Bank of America, JPMorgan and Jefferies are the joint leads on the deal, with Citi the left lead.

Libor margin, Libor floor and original issue discount on the loan are still to be determined, the source said.

The loan includes an incurrence-based high-yield covenant package.

Amortization is based on the company's total leverage ratio. If leverage is 3.25 to 1.00, then amortization is 7.5% per annum. If leverage is less than or equal to 3.25 to 1.00 and greater than 2.50 to 1.00, then amortization is 3.5% per annum. And, if leverage is less than or equal to 2.50 to 1.00, then amortization is 1.0% per annum.

Security is substantially all of the assets of the company.

Proceeds will be used to refinance existing debt and purchase partnership interests.

Commitments are due on July 16.

Chester Downs is the operator of a racetrack casino in Chester, Pa.

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