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Syndicate Arranges $900MM Financing for Golden Entertainment Ahead of American Casino Acquisition

August 17, 2017, 08:00 AM
Filed Under: Gaming

Nevada-based gaming firm Golden Entertainment, Inc. announced that it has successfully completed syndication of its financing commitments to fund its pending acquisition of American Casino & Entertainment Properties and to refinance Golden’s outstanding debt at closing.

JP Morgan, Credit Suisse, Macquarie Capital and Morgan Stanley acted as joint lead arrangers for the syndication of the credit facilities.

The syndicated commitments consist of a $800 million 1st lien term loan priced at L+300 with 0.5% OID and a $200 million 2nd lien term loan priced at L+700 with 1.5% OID. Maturities on the 1st and 2nd lien term loans are seven and eight years, respectively. In addition, the credit facilities will provide for a $100 million unfunded revolver to support future growth opportunities. Based on the syndicated pricing of the new term loans, the Company’s expected weighted average interest rate on its funded debt at closing will be approximately 5%.

“We are pleased with the capital markets’ receptivity to our strategy and the financial profile created by the pending acquisition of American Casino & Entertainment Properties,” commented Charles Protell, Chief Strategy Officer and Chief Financial Officer. “The strong financial performance of both Golden and American in the first half of 2017 reinforces the merits of this transaction for our shareholders and the potential to accelerate value creation through operational synergies as well as new strategic opportunities.”

The transactions remain subject to customary closing conditions, including regulatory approvals, and are expected to close in Q4 2017.

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