Dave & Buster’s Entertainment, an owner and operator of entertainment and dining venues, amended its credit agreement, achieving a reduction in the interest rate margin applicable to its term loans and revolving loans outstanding under its credit agreement by 60 basis points (inclusive of the removal of the 10-basis-point credit spread adjustment) with an additional 25 basis point reduction with respect to the term loans upon achieving certain ratings from Moody’s and S&P.

The company’s term loans now bear an interest rate of SOFR plus 325 basis points (instead of a rate of SOFR plus 375 prior to the amendment). The amendment is expected to result in more than $5 million of annual cash interest savings. There are no changes to the maturity of the outstanding term loans and revolving loans as a result of the repricing.

“We are pleased with the outcome of this purely opportunistic repricing and would like to thank our lender group for their support in a swift execution as we continue to reduce cash interest costs for added financial flexibility and the benefit of our shareholders,” Michael Quartieri, CFO of Dave & Buster’s, said.

Deutsche Bank Securities, JPMorgan Chase, Wells Fargo Securities, BMO Capital Markets, Truist Securities, Capital One and Fifth Third Bank acted as joint lead arrangers and joint bookrunners for the transaction.