Gaming Capital shifts to pro rata structure, pulls term loan B

By Sara Rosenberg

New York, May 5 – Gaming Capital Group (GCG Holdings LLC) withdrew its $450 million seven-year covenant-lite term loan B from market and is instead going with an all-pro rata structure, according to a market source.

The source explained that there was significant demand from the company’s pro rata lenders and the change in structure will result in meaningful interest savings to the company.

The term loan B had been talked at SOFR+10 basis points CSA plus 525 bps to 550 bps with a 0.5% floor and an original issue discount of 98.

Also, the term loan included 101 soft call protection for six months and amortization of 5% per annum for the first four quarters, stepping down to 2.5% per annum thereafter.

Wells Fargo Securities LLC, Goldman Sachs Bank USA, US Bank, PNC and NV State Bank were the leads on the term loan B.

Proceeds from the now all-pro rata transaction will be used to refinance existing debt and consolidate ownership by performing buyouts of various GCG entities.

Gaming Capital is a Newcastle, Okla.-based provider of class II and class III electronic gaming machines to tribal and commercial casinos in the Oklahoma market.

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