CEC Entertainment plans news debt financing for buyout by Apollo

By Sara Rosenberg

New York, Jan. 16 - CEC Entertainment Inc. has received a commitment for new debt financing to help fund its purchase by Apollo Global Management LLC, according to a news release.

Deutsche Bank Securities Inc., Morgan Stanley, UBS Securities LLC and Credit Suisse are the lead banks on the debt.

Under the agreement, CEC is being bought for $54.00 per share in a transaction valued at about $1.3 billion, including the assumption of debt.

Closing is subject to a minimum tender condition of more than 50% of the company's common shares, the receipt of the Federal Trade Commission's approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions.

There is a go-shop period until Jan. 29.

CEC is an Irving, Texas-based operator of Chuck E. Cheese's family dining and entertainment stores.

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