FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
Skip Navigation LinksHome / News / Read News


Jefferies, Goldman Sachs Arrange Dave & Buster’s $580MM Refinancing

July 28, 2014, 07:51 AM
Filed Under: Restaurant

Dave & Buster's, Inc., a leading operator of high volume entertainment/dining complexes, announced it has closed a $50 million revolving credit facility and $530 million senior secured first lien Term Loan B. The facilities are senior secured obligations of Dave & Buster's Holdings, Inc. and will be guaranteed by its material subsidiaries.

The proceeds of this transaction were used to refinance in whole the existing senior secured credit facility (of which $144 million was outstanding as of May 4, 2014), repay $200 million aggregate principal amount of the 11.0% senior notes due June 1, 2018, repay all outstanding 12.25% senior discount notes issued by Dave & Buster's Entertainment, Inc. due February 15, 2016 ($146.2 million accreted as of May 4, 2014) and pay related premiums, interest and expenses.

Based on current market conditions, the refinancing represents a 490 basis point reduction in interest costs and is estimated to reduce annual cash and accrued interest expense by approximately $22 million per year.

"Dave & Buster's improved credit profile supported by a strong credit market enabled us to significantly reduce our cost of debt, and in doing so, bolster our capital structure. This opportunistic refinancing was made possible through the inherent strength of our business model and proven track record of generating robust financial results," said the company's Chief Executive Officer, Steve King.

King concluded, "We pride ourselves on differentiating Dave & Buster's from mainstream casual dining through our 'Eat Drink Play and Watch' brand attributes and appreciate all of our team members who have made us the exciting entertainment and dining destination that we are today. With this refinancing now complete, we look forward to the next chapter in our company story."

Jefferies & Company, Inc. and Goldman, Sachs & Co. served as Joint Lead Arrangers and Joint Bookrunners for the transaction.

Founded in 1982 and headquartered in Dallas, TX, Dave & Buster's is a leading owner and operator of 69 high-volume entertainment/dining complexes that provide both adults and families the opportunity to "Eat Drink Play and Watch" all in one location.

Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.