Hard Rock Northern Indiana lifts term loan to $370 million, flexes up

By Sara Rosenberg

New York, Oct. 16 – Hard Rock Northern Indiana (Spectacle Gary Holdings LLC) upsized its six-year first-lien term loan (B3/B-) to $370 million from $350 million and increased pricing to Libor plus 900 basis points from talk in the range of Libor plus 800 bps to 825 bps, according to a market source.

Also, the Libor floor on the term loan was changed to 2% from 1% and the original issue discount widened to 97 from 98, the source said.

In addition, the call protection was revised to non-callable for 18 months, then at 109, 106 and 103 from non-callable for 18 months, then at 102 and 101.

The term loan has maximum leverage, maximum capital expenditures and minimum EBITDA covenants.

As before, of the total term loan amount, $25 million is delayed-draw.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are the lead arrangers on the deal.

Recommitments are due at noon ET on Thursday, the source added.

Proceeds will be used to fund the construction of the Hard Rock Northern Indiana.

Hard Rock Northern Indiana is a land-based casino in Gary, Ind.

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