CCM Merger launches $490 million term loan B at Libor plus 375 bps

By Sara Rosenberg

New York, July 21 – CCM Merger Inc. (MotorCity Casino Hotel) launched on Monday its $490 million seven-year senior secured term loan B (B+) with price talk of Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99˝, according to a market source.

The term loan has 101 soft call protection for six months and a springing maturity to the company’s existing notes, the source said.

Financial covenants include maximum first-lien leverage, maximum interest coverage and maximum capital expenditures.

Commitments are due on July 29, the source added.

Bank of America Merrill Lynch and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing senior credit facility debt.

CCM Merger is the operator of MotorCity Casino, a multi-story gaming, hotel, dining convention/conference and entertainment facility near downtown Detroit.

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