Global Cash Access gets $280 million amended, restated credit facility

By Sara Rosenberg

New York, April 15 - Global Cash Access Inc. closed on a $280 million amended and restated credit facility, according to an 8-K filed with the Securities and Exchange Commission Friday.

Bank of America acted as the sole lead arranger, sole bookrunner and administrative agent on the deal.

The deal, which closed on April 13, reduces interest rates, increases the amount of permitted capital expenditures, waives the requirement that 50% of the proceeds of an initial public offering be used to prepay borrowings under the credit facility and permits IPO proceeds to be used for the redemption of up to 35% of the company's senior subordinated notes.

The facility consists of a $260 million term loan B with an initial interest rate of Libor plus 225 basis points and a $20 million revolving credit facility with an initial interest rate of Libor plus 250 basis points.

Pricing on the term loan can step down to Libor plus 200 basis points if leverage is less than 4.25:1.00 but greater than or equal to 3.50:1.00 and ratings are B1/B+ or better. Furthermore, pricing can step down to Libor plus 175 basis points if leverage is less than 3.50:1.00 and ratings are B1/B+ or better.

Pricing on the revolver can step down to Libor plus 225 basis points if leverage is less than 4.75:1.00, the filing said.

Maximum capital expenditures are now set at $8 million for 2005 through 2010. In 2004, the capital expenditures limit was $4 million.

Global Cash Access is a Las Vegas-based provider of cash access and related marketing services.

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