| NEW YORK, July 25
NEW YORK, July 25 Peninsula Gaming
is launching $875 million of senior secured credit facilities to
back its acquisition by Boyd Gaming, sources told Thomson
Reuters LPC. Bank of America Merrill Lynch will launch the
facilities at 9:30 a.m. Thursday via a lender meeting in New
The facilities comprise a $50 million, five-year
superpriority revolving credit facility, and an $825 million
five-year term loan B. The TLB will have standard 1 percent
Proceeds from the credit facilities, along with a $350
million senior note offering at Peninsula, a $200 million
investment from Boyd, and an approximately $144 million HoldCo
seller note, will be used to finance Boyd's $1.45 billion
acquisition of Peninsula.
The revolver will have a 50bp undrawn fee, according to a
May 17 SEC filing. The revolver and term loan are subject to a
50 percent excess cash flow sweep and a mandatory debt repayment
from asset sale proceeds. The deal will have covenants for
maximum leverage and minimum fixed-charge coverage.
BAML is lead left on the deal, with Deutsche Bank and JP
Morgan on the right. Boyd expects the Peninsula transaction to
close by the end of 2012.
Based in Las Vegas, Boyd Gaming is a casino entertainment
company, operating 16 gaming entertainment properties in six
states: Nevada, New Jersey, Mississippi, Illinois, Indiana and
Louisiana. Peninsula Gaming is a casino and entertainment
company based in Dubuque, Iowa.