ECL Entertainment launches $35 million term B at SOFR plus 750 bps

By Sara Rosenberg

New York, Jan. 18 – ECL Entertainment LLC launched on Wednesday morning a fungible $35 million incremental first-lien term loan B due April 2028 with price talk of SOFR+CSA plus 750 basis points with a 0.75% floor and an original issue discount of 99, according to a market source.

CSA is 11 bps one-month rate, 26 bps three-month rate and 43 bps six-month rate, the source said.

Like the existing term loan B, the incremental term loan has 101 hard call protection through October 2024.

The incremental term loan includes amortization of 1% per annum and a maximum first-lien net leverage covenant of 5.5x from third quarter 2023 through second quarter 2024 and 5.25x thereafter.

Expected term loan ratings are B2/B.

Credit Suisse Securities (USA) LLC is the lead arranger on the deal.

Commitments are due at 2 p.m. ET on Thursday, the source added.

Proceeds will be used with excess cash and contributed land to fund a joint venture investment and a distribution to shareholders.

In connection with this transaction, pricing on the existing term loan B will transition to SOFR from Libor plus 750 bps with a 0.75% floor.

ECL is a regional gaming company.

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