Affinity Gaming Said to Set Rate on $200 Million Term Loan B
Affinity Gaming LLC, a casino and hotel operator, set the interest rate it will pay on a $200 million term loan B it’s seeking to refinance debt, according to a person with knowledge of the transaction.
The debt will pay interest at 4.5 percentage points more than the London interbank offered rate, said the person, who declined to be identified because the terms are private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.
Affinity Gaming is proposing to sell the loan at 99 cents on the dollar, the person said, reducing proceeds for the company and boosting the yield to investors.
Deutsche Bank AG is arranging the financing for the Las Vegas-based company, the person said.
Proceeds from the new term loan along with $200 million in senior secured notes due in 2020 will be used to repay the company’s existing credit facility, the company said today in statement distributed by Business Wire.
The company’s existing term loan due in December 2015 was quoted at 102.875 cents on the dollar today, down from 103 cents yesterday, and pays interest at 7 percentage points more than Libor with a 3 percent floor, according to data compiled by Bloomberg.
William Schmitt, a spokesman for Affinity Gaming, didn’t immediately respond to an e-mail seeking comment.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan it can’t.
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