Fertitta Entertainment (Golden Nugget) completes $3.3B term loan; terms

Fertitta Entertainment LLC, formerly known as Golden Nugget LLC, has completed its $3.3 billion, seven-year term loan B that priced tight to talk at a spread of 400 basis points over the secured overnight financing rate plus a credit spread adjustment, with a 0.50% floor and an original issue discount of 99.75 via a Jefferies-led arranger group, according to sources.

The facility has two leverage-based margin step-downs. It was upsized from $1.85 billion during syndication in a shift from the concurrent bond offering. Proceeds from the financing will be used to refinance approximately $4.6 billion of existing debt, fund a $250 million dividend to the company's owner and add cash to the balance sheet. Additional financing includes a $500 million, five-year revolver with a springing secured net leverage covenant. Golden Nugget is a diversified gaming, restaurant and entertainment company with 614 total locations, including five casino properties, 517 full-service restaurants, four aquariums and two amusement parks.

Terms: