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Merrill Lynch, Others Arrange $800MM Senior Facility for Dave & Buster’s

August 21, 2017, 07:34 AM
Filed Under: Entertainment

Dave & Buster's Entertainment, Inc., an owner and operator of entertainment and dining venues, announced that it closed a five-year $800 million senior credit facility, which is a senior secured obligation of Dave & Buster's, Inc., and guaranteed by Dave & Buster's Holdings, Inc. and certain of Dave & Buster's, Inc.'s material subsidiaries. This facility consists of a $300 million senior secured first lien Term Loan A in addition to a $500 million revolver.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC, Regions Bank, N.A. and Capital One, N.A. are the joint lead arrangers and bookrunners.

The terms of this amended and restated credit agreement increase the Company's borrowing capacity by over $300 million to $800 million, extend the term by two years to 2022 from 2020, and lower the Company's interest rate by 25 basis points.

The Company utilized approximately $300 million of proceeds from the new facility to refinance in whole the existing Term Loan A (of which $135 million was outstanding), refinance the existing revolver (of which $156 million was outstanding), pay related interest and expenses, and provide cash for general corporate purposes. The existing five-year $500 million facility commenced on May 15, 2015 and originally comprised of a $150 million senior secured Term Loan A in addition to a $350 million revolver.

"This opportunistic refinancing provides Dave & Busterâs with greater capacity and increased flexibility to continue to invest in our business, while returning value to shareholders. Weâve also taken advantage of current market conditions to lower our borrowing costs. The new facility is recognition of the company's strong market position as well as opportunities for significant future growth," said Brian Jenkins, Chief Financial Officer.

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