July 25, 2012 / 3:27 PM / in 5 years

RLPC: Peninsula Gaming to launch $875M M&A loan

NEW YORK, July 25 (Reuters) - 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 York.

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 annual amortization.

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.

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