Seneca Gaming to get $225 million five-year secured credit facility

By Sara Rosenberg

New York, Nov. 4 - Seneca Gaming Corp. plans on getting a new $225 million five-year senior secured credit facility (BB), according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Bank of America is the administrative agent on the deal.

The facility consists of a $175 million term loan and a $50 million revolver.

Pricing on the facility can range from Libor plus 125 basis points to 275 bps based on leverage.

Financial covenants include a fixed-charge coverage ratio of 1.05 to 1.0 and a total leverage ratio of not more than 3.75 to 1.0 for the first three fiscal quarters and decreasing on a step basis to 2.5 to 1.0 for the fiscal quarters ending after Dec. 31, 2014.

Amortization on the term loan is 20% per year.

There is a $50 million accordion feature.

Proceeds from the facility, along with $325 million of notes, will be used to refinance an existing $50 million revolver and fund the purchase of the company's $500 million of 7¼% senior notes due 2012.

Seneca Gaming is a Niagara Falls, N.Y.-based owner, developer and operator of gaming operations.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.