CEC Entertainment, a nationally recognized company in family entertainment and dining with its Chuck E. Cheese, Peter Piper Pizza brands and virtual kitchen concept, Pasqually’s Pizza & Wings, successfully amended and extended its existing revolving credit agreement._x000D_
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In addition to extending the maturity date and upsizing the facility to $100 million, some of the key terms of the amended credit agreement include:_x000D_
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- $100 million of commitments ($50 million committed by JPMorgan Chase Bank and $50 million committed by Goldman Sachs Bank)
- Obligations under the revolving credit facility will no longer rank senior to, but instead rank pari passu with, the company’s existing 6.75% senior secured notes due May 2026
- Maturity date is the earlier of Aug. 9, 2029 and the date that is 91 days prior to the maturity date of the company’s 6.75% senior secured notes due May 2026 if any notes remain outstanding on such date
- $20 million letter of credit sub-facility
- Beginning with the fiscal quarter ending Jan. 26, 2024, the financial maintenance covenant is increased from 4.00:1.00 to 5.50:1.00, tested when the aggregate revolving facility credit exposure exceeds 40.0% of the commitments
- Term SOFR rate is determined by reference to the forward-looking term secured overnight financing rate for the relevant currency, plus 0.10% (either a one, three or six-month SOFR borrowing, at the company’s option, with a 0.00% SOFR floor), plus a 4.00% margin
- JPMorgan Chase Bank is the administrative and collateral agent
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As of Aug. 12, 2024, the company had no borrowings outstanding and $5.9 million of letters of credit issued but undrawn under the revolving credit facility._x000D_
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“The new revolving credit facility is a recognition of the company’s strong family-friendly restaurant and entertainment brands and places the enterprise in position for significant future growth,” Scott Drake, chief financial officer of CEC Entertainment, said._x000D_
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JPMorgan Chase Bank served as lead arranger with Goldman Sachs Bank USA as joint lead arranger in connection with the amendment of the revolving credit facility. Akin Gump Strauss Hauer & Feld served as the company’s legal advisors, and Latham & Watkins served as legal advisors to JPMorgan Chase Bank and Goldman Sachs Bank.
