CEC Entertainment borrows $105 million under $114 million revolver

By Rebecca Melvin

New York, March 18 – CEC Entertainment Inc. has borrowed $105 million available under its $114 million five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission on Wednesday.

The company’s current borrowing rate under the loan, which was entered into Aug. 30, 2019, is Libor plus 650 basis points.

The company, which had no borrowings outstanding as of Dec. 29, has increased its borrowing under the revolver as a precautionary measure to increase its cash position and preserve financial flexibility in light of the current uncertainty in global markets resulting from the Covid-19 outbreak.

The company’s credit agreement with Credit Suisse AG as administrative agent and collateral agent consists of the $114 million revolver and a $760 million term loan facility with a seven-year maturity.

CEC is an Irving, Tex.-based operator of family dining and entertainment stores.

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