Enterprise Development Authority to launch $475M term loan for refinancing

Sole lead arranger Wells Fargo has scheduled a lender call for noon ET today to launch a $475 million term loan B for The Enterprise Development Authority, according to sources. Commitments will be due noon ET on Thursday, Feb. 18.

Price talk for the seven-year covenant-lite term loan is not yet available, but lenders will be offered six months of 101 soft call protection and the term loan will amortize at 5% per annum. Additionally, the equity cash flow sweep is 50% when total net leverage is greater than 2.5, stepping to 0% at less than 2.5x.

Proceeds from the transaction will be used to refinance existing debt. The issuer has $450 million of 12% secured notes due 2024 that were placed in July 2018.

Investors are being told to expect facility ratings of B/B3/BB, with a 2 recovery rating from Fitch, and corporate ratings of B/B3/B+.

The Enterprise Development Authority is an unincorporated governmental instrumentality of the Estom Yumeka Maidu Tribe of the Enterprise Rancheria and was formed in 2015 to own, develop, construct, and operate all gaming and related businesses of the Tribe, including the Hard Rock Hotel & Casio - Sacramento at Fire Mountain.