CEC Entertainment Inc., owner of the Chuck E. Cheese restaurant chain, obtained $1.18 billion in loans to support its purchase by Apollo Global Management LLC.
The financing comprises $875 million in bank debt, including a $725 million term loan and a $150 million revolving line of credit, as well as a $305 million bridge loan, the company said yesterday in a regulatory filing. Deutsche Bank AG, Credit Suisse Group AG, Morgan Stanley and UBS AG are arranging the transaction.
Apollo will pay $54 a share in an all-cash deal valued at $1.3 billion, including debt, Irving, Texas-based CEC said in a statement yesterday. The deal is conditioned upon a cash tender offer, and CEC may entertain other takeover proposals until Jan. 29.
CEC has about $349 million outstanding under a revolving line of credit that comes due in October 2016, according to data compiled by Bloomberg.
In a revolving line of credit, money may be borrowed again once it’s repaid; in a term loan it can’t. Bridge facilities are short-term borrowings that usually mature in one year and are often used as backstops to bond offerings or longer-dated bank debt.