Daily News: July 29, 2014

Jefferies, Goldman Lead Dave & Buster’s Refi

Dave & Buster’s announced it closed a $50 million revolving credit facility and $530 million senior secured first lien term loan B. The facilities are senior secured obligations of Dave & Buster’s Holdings, and will be guaranteed by its material subsidiaries.

Jefferies & Company and Goldman Sachs served as joint lead arrangers and joint bookrunners for the transaction.

The proceeds of this transaction were used to refinance in whole the existing senior secured credit facility (of which $144 million was outstanding as of May 4, 2014), repay $200 million aggregate principal amount of the 11.0% senior notes due June 1, 2018, repay all outstanding 12.25% senior discount notes issued by Dave & Buster’s Entertainment, due February 15, 2016 ($146.2 million accreted as of May 4, 2014) and pay related premiums, interest and expenses.

Based on current market conditions, the refinancing represents a 490 basis point reduction in interest costs and is estimated to reduce annual cash and accrued interest expense by approximately $22 million per year.

Dave & 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. This opportunistic refinancing was made possible through the inherent strength of our business model and proven track record of generating robust financial results, said CEO Steve King.

“We pride ourselves on differentiating Dave & Buster’s from mainstream casual dining through our ‘Eat Drink Play and Watch’ brand attributes and appreciate all of our team members who have made us the exciting entertainment and dining destination that we are today,” King said. “With this refinancing now complete, we look forward to the next chapter in our company story.”

Dallas headquartered-Dave & Buster’s is an owner and operator of 69 entertainment dining complexes that provide adults and families the opportunity to “eat, drink, play and watch” in one location.