CEC Entertainment flexes $760 million term loan to Libor plus 650 bps

By Sara Rosenberg

New York, Aug. 13 – CEC Entertainment Inc. raised pricing on its $760 million seven-year covenant-lite first-lien term loan (B2/B-) to Libor plus 650 basis points from talk in the range of Libor plus 550 bps to 575 bps, according to a market source.

Also, the Libor floor on the term loan was increased to 1% from 0%, the original issue discount was revised to 96 from 99 and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a springing maturity.

Credit Suisse Securities (USA) LLC is the left lead arranger on the deal.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to refinance an existing term loan and to pay related fees and expenses.

CEC is an Irving, Tex.-based operator of family dining and entertainment stores through Chuck E. Cheese and Peter Piper Pizza brands.

© 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.