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Tropicana Las Vegas converts term loan to revolver, extends maturities
By Marisa Wong
Madison, Wis., Dec. 26 - Tropicana Las Vegas Hotel and Casino, Inc.'s wholly owned subsidiary, Tropicana Las Vegas Inc., agreed on Dec. 21 to amend and restate its loan agreement with Wells Fargo Principal Investments, LLC as lender and Wells Fargo Bank, NA as administrative agent.
According to an 8-K filed Wednesday with the Securities and Exchange Commission, the current borrowing base remains at $65 million with the $10 million term loan being converted into a revolving credit facility.
The company now has a $50 million revolving credit facility A that bears interest at 4%, a $5 million revolving credit facility B that bears interest at 5% and a $10 million revolver C that bears interest at 6%.
Each revolver has an unused commitment fee of 50 basis points.
The amended and restated loan extends the maturity of each revolver to April 2, 2018, the filing added.
Under the amended and restated loan, Tropicana Las Vegas is required to deposit $5 million into an interest reserve account, meet certain EBITDA minimums on a quarterly basis for the periods from March 31, 2015 through March 31, 2018 with a standard cure provision if the EBITDA minimums are not met and limit annual aggregate capital expenditures to $18 million in 2013 and 2014.
In addition, lender Wells Fargo Principal Investments agreed to release its security interest in a one-acre parcel for future development.
Tropicana Las Vegas Hotel and Casino will issue 13,000 shares of its class A series 4 convertible participating preferred stock as an amendment fee to the lender.
Tropicana is a Las Vegas-based hotel resort and casino.
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