Great Wolf Resorts launches $420 million credit facility to investors

By Sara Rosenberg

New York, July 17 - Great Wolf Resorts Inc. held a bank meeting at 2 p.m. ET on Wednesday to launch a $420 million senior secured credit facility (BB-), according to a market source.

Deutsche Bank Securities Inc., Barclays and Goldman Sachs Bank USA are the lead banks on the deal.

The facility consists of a $100 million five-year revolver and a $320 million seven-year covenant-light term loan B, the source said.

Price talk on the B loan is Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 99, the source continued.

The term B has 101 soft call protection for six months.

Commitments are due on July 31, the source added.

Proceeds will be used to repay all of the 10 7/8% first mortgage notes due 2017 issued by GWR Operating Partnership LLLP and Great Wolf Finance Corp., to refinance the outstanding debt under the existing senior secured credit facility of Great Wolf Lodge of the Carolinas LLC and for general corporate purposes.

Great Wolf is a Madison, Wis.-based water park resort operator.

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