Great Canadian flexes $725 million term loan B to Libor plus 400 bps

By Sara Rosenberg

New York, June 16 – Great Canadian Gaming Corp. reduced pricing on its $725 million covenant-lite term loan B (roughly C$875 million equivalent) (B2/B+/BB+) due Nov. 1, 2026 to Libor plus 400 basis points from talk in the range of Libor plus 450 bps to 475 bps, according to a market source.

Also, the company added a step-down to the term loan to Libor plus 375 bps upon ratings of B2/B/B with stable outlooks, and revised the original issue discount to 99.5 from 99, the source said.

As before, the term loan has a 0.75% Libor floor and 101 soft call protection for six months.

Earlier in syndication, the term loan was upsized from U.S. dollar equivalent C$650 million as the company’s senior secured notes offering was reduced from its initially planned amount to C$425 million U.S. dollar equivalent.

Deutsche Bank Securities Inc., Barclays, TD Securities (USA) LLC, Macquarie Capital (USA) Inc., BMO Capital Markets and Citizens Bank are the bookrunners on the deal. Deutsche is the administrative agent.

Commitments were scheduled to be due at noon ET on Wednesday, the source added.

Proceeds will be used to help fund the buyout of the company by Apollo Global Management Inc. for C$45.00 in cash per share.

Great Canadian Gaming is an Ontario-based gaming, entertainment and hospitality company.

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