Horseshoe Baltimore flexes $300 million term B to Libor plus 400 bps

By Sara Rosenberg

New York, June 27 – Horseshoe Baltimore (CBAC Gaming LLC) increased pricing on its $300 million seven-year covenant-light term loan B to Libor plus 400 basis points from Libor plus 350 bps and added a step-down to Libor plus 375 bps at corporate ratings of B2/B with a stable outlook, according to a market source.

Furthermore, the 101 soft call protection was extended to one year from six months and the MFN sunset was eliminated, the source said.

The term loan still has a 0% Libor floor and an original issue discount of 99.

The company’s $315 million of senior secured credit facilities (B3/B) also include a $15 million five-year revolver.

Wells Fargo Securities LLC, Macquarie Capital (USA) Inc. and Nomura are the leads on the deal.

Commitments were scheduled to be due on Tuesday.

Proceeds will be used to refinance an existing credit facility and an existing furniture, fixtures and equipment financing facility.

Pro forma total leverage will be 4.5 times based on March 31 last-12-months adjusted EBITDA of $68.4 million and 3.9 times based on adjusted EBITDAM.

CBAC, a joint venture between Caesars Growth Partners LLC and several other third parties, is the owner and operator of the Horseshoe Baltimore Casino in Baltimore.

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