US-based entertainment operator Dave and Buster’s has completed the refinancing of its outstanding debt, boosting its capital structure, CEO Steve King said.
The company has closed a $50m revolving credit facility and $530m senior secured first lien Term Loan B. The facilities are senior secured obligations of Dave and Buster's Holdings and will be guaranteed by its material subsidiaries.
The proceeds of the transaction were used to refinance the company’s existing senior credit facility, repay a $200m aggregate principle amount of the 11 per cent senior notes due on June 1, 2018, repay all outstanding 12.25 per cent senior discount notes issued by Dave and Buster’s Entertainment due February 15, 2016, and pay related premiums, interest and expenses.
The refinancing represents a significant reduction in interest costs and is estimated to reduce annual cash and accrued interest expense by approximately $22m a year.
"Dave and Buster's improved credit profile supported by a strong credit market enabled us to significantly reduce our cost of debt and, in doing so, bolster our capital structure,” said King. “This opportunistic refinancing was made possible through the inherent strength of our business model and proven track record of generating robust financial results.
"With this refinancing now complete, we look forward to the next chapter in our company story."
