Affinity Gaming discloses talk on $225 million in term loans

By Sara Rosenberg

New York, Aug. 9 – Affinity Gaming released price talk on its $225 million in term loans in connection with its bank meeting on Wednesday, according to a market source.

The $125 million incremental first-lien term loan B is talked at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 99.75, and the $100 million second-lien term loan is talked at Libor plus 775 bps with a 1% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Jefferies LLC is the lead bank on the deal.

Commitments are due on Aug. 17, the source added.

Proceeds will be used to refinance the company’s existing second-lien term loan and to fund a future dividend.

The use of proceeds is subject to regulatory approval.

Also, existing lenders are being offered a 12.5 bps fee for an amendment request.

With this transaction, the company is asking to reprice its existing first-lien term loan to Libor plus 325 bps with a 1% Libor floor from Libor plus 350 bps with a 1% Libor floor.

Affinity Gaming is a Las Vegas-based diversified casino gaming company.

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