Boyd Gaming Plans New Loan; Community Health Obtains M&A FundingSridhar Natarajan
Boyd Gaming Corp. is seeking $1.75 billion in loans to refinance existing debt while Community Health Systems Inc. obtained funding commitments for its acquisition of Health Management Associates.
Boyd, the fourth largest U.S. casino operator, is seeking a $1 billion term loan coming due in 2020, a $150 million piece maturing in 2018 and a $600 million revolving credit facility, according to a report from Standard & Poor’s.
Bank of America Corp. and Credit Suisse Group AG has committed financing for Community Health’s takeover, which consists of $2.25 billion in term loans, a secured bridge loan of as much as $2.2 billion and a $2.4 billion unsecured bridge loan, according to a regulatory filing yesterday.
Reliance Industries Ltd., operator of the world’s biggest oil refinery complex, plans to borrow $1.75 billion to refinance debt and fund capital expenditure, according to two people familiar with the matter. The facility may be drawn in U.S. and Singapore dollars, Euros and Japanese yen, and proceeds will be used to help refinance debt.
Prices on the largest, first lien loans slid for a sixth day, declining 0.01 cent to 98.24 cents on the dollar, the lowest level in two weeks, according to the S&P/LSTA U.S. Leveraged Loan index. The floating-rate debt has returned 3.3 percent, gaining at a slower pace than the 9.6 percent it provided to investors in all of last year, S&P/LSTA data show.
American Airlines Inc. increased the size of an add-on offering to an existing $1.05 billion debtor-in-possession loan to exit bankruptcy. The carrier, which was initially planning a $500 million increase, is now offering $850 million, according to a person familiar with the offering who asked not to be identified because terms aren’t set.
Pret A Manger, the sandwich chain owned by Bridgepoint, closed syndication for 375 million pounds ($570 million) of loans to refinance debt used to finance its 2008 buyout and pay a dividend to shareholders. Allocations will take place later this week, according to a person with knowledge of the matter who asked not to be identified because the deal is private.
In a revolving credit, money can be borrowed again once it’s repaid; in a term loan, it can’t.