Cannery Casino sets talk on first- and second-lien loans with launch

By Sara Rosenberg

New York, Sept. 13 - Cannery Casino Resorts LLC released price talk on its first- and second-lien term loans as the debt launched with a bank meeting on Thursday afternoon, according to a market source.

The $350 million six-year first-lien term loan (B2/BB-) is talked at Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 99, and the $175 million seven-year second-lien term loan (Caa2/CCC+) is talked at Libor plus 900 bps with a 1.25% floor and a discount of 98, the source said.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three, the source added.

The $565 million credit facility also includes a $40 million five-year revolver (B2/BB-).

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Macquarie Capital are the lead banks on the deal.

Proceeds will be used to repay bank debt and some PIK preferred stock.

Cannery Casino is a Las Vegas-based owner and operator of hotels and casinos.

© 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.