Shuffle Master gets commitments for $60 million term loan, looking for another $20 million

By Sara Rosenberg

New York, July 14 - Shuffle Master Inc. has received commitments for a $60 million term loan from Deutsche Bank, Wachovia and KeyBank, with each of these banks committing an equal amount to the deal, according to an S-1/A filed with the Securities and Exchange Commission Monday.

The company is currently seeking additional commitments for up to $20 million towards the term loan to bring the total maximum size of the tranche to $80 million.

The term loan, due Nov. 30, 2011, is priced at Libor plus 375 basis points.

In addition, the company amended its existing revolver on Monday to allow for the new term loan and to reduce the accordion feature under the revolver by the equivalent amount of the term loan.

Deutsche Bank is the administrative agent on the revolver.

Funding of the term loan is subject to the completion of a common stock offering that is expected to generate about $75 million in proceeds.

The revolver amendment will become effective upon the satisfaction of certain conditions, including the receipt by the company of at least $135 million in aggregate proceeds from stock offering and the term loan.

Proceeds from the term loan, the stock offering, borrowings under the existing revolver and cash on hand will be used to repurchase the company's $150 million of 1.25% contingent convertible senior notes due April 19, 2009.

Shuffle Master is a Las Vegas-based gaming supply company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.