Eagle II Acquisition Company, a wholly-owned subsidiary of Eldorado Resorts, entered into a new credit agreement with JPMorgan Chase Bank as administrative agent, consisting of a $1.45 billion term loan facility and a $300 million revolving credit facility.
The proceeds of the new term loan facility will be placed in escrow pending satisfaction of certain conditions, including consummation of the company’s pending acquisition of Isle of Capri Casinos. The new revolving credit facility was undrawn as of the closing date. The company intends to apply the financings, together with the proceeds of the 6% senior notes due 2025 to pay the cash portion of the consideration payable in the acquisition, to refinance all of the debt outstanding under Isle’s existing credit facility, to redeem or otherwise repurchase all of Isle’s outstanding 5.875% senior notes due 2021 and 8.875% senior subordinated notes due 2020, to repay all amounts outstanding under the company’s existing credit facility and to pay fees and costs associated with the acquisition and such financing transactions.
The company’s obligations under the revolving credit facility will mature on April 17, 2022. The company’s obligations under the term loan facility will mature on April 17, 2024.