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Montreign lifts term B to $390 million, firms at Libor plus 825 bps
By Sara Rosenberg
New York, Dec. 7 – Montreign Operating Co. LLC upsized its six-year first-lien term loan B to $390 million from $375 million and set pricing at Libor plus 825 basis points, the midpoint of the Libor plus 800 bps to 850 bps talk, according to a market source.
Also, the collateral package will now include both the Entertainment Village and golf course, the source said.
As before, the term loan B has a 1% Libor floor and an original issue discount of 98, and is non-callable for 2.5 years, then at 102 for a year and 101 for a year.
Covenants include a maximum leverage ratio, a minimum interest coverage ratio and maximum capital expenditures.
Along with the term loan B upsizing, the company added a new $70 million five-year term loan A that is priced at Libor plus 500 bps with no Libor floor and an original issue discount of 98, the source continued.
Furthermore, Montreign’s equipment financing was downsized to $40 million from $70 million and total equity was increased to $374 million from $358 million.
Credit Suisse Securities (USA) LLC is the lead bank on the deal.
Recommitments were scheduled to be due at 5 p.m. ET on Wednesday.
Proceeds will be used to fund the development of the Montreign Resort Casino in the Hudson Valley region in New York.
The increased proceeds from the term loan B upsizing, term loan A addition and equity raise will be used to fund the $40 million construction of Entertainment Village and the $21 million construction/renovation of the ‘Monster’ golf course, and $10 million will be used for increased interest reserve and financing costs, the source added.
Montreign Operating is a casino operator in the Hudson Valley.
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