Century Casinos flexes $350 million term loan B to SOFR plus 600 bps

By Sara Rosenberg

New York, March 23 – Century Casinos Inc. increased pricing on its $350 million seven-year covenant-lite term loan B (B3/B) to SOFR+CSA plus 600 basis points from SOFR+CSA plus 575 bps, according to a market source.

Also, some changes were made to documentation, the source said.

The term loan still has a 0.75% floor, an original issue discount of 98, 101 hard call protection for one year, amortization of 1% per annum and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The company is also getting a $30 million five-year super priority revolving credit facility (Ba3/BB-).

Goldman Sachs Bank USA and BofA Securities Inc. are the lead arrangers on the deal.

Commitments were scheduled to be due at 11 a.m. ET on Wednesday, the source added.

Proceeds will be used with balance sheet cash to support the acquisition of 100% of Nugget Sparks LLC and 50% of Smooth Bourbon LLC from Marnell Gaming LLC for $195 million, refinance existing debt and fund development capital expenditures.

The company will also have a five-year option to purchase the remaining 50% of Smooth Bourbon for $105 million plus 2% per annum.

Net leverage is expected to be 3.1x.

Closing on the financing is anticipated on April 1.

Century Casinos is a Colorado Springs, Colo.-based casino entertainment company.

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