Bowlero, an owner and operator of bowling centers, closed a $900 million term loan B due Feb. 8, 2028, in a net-leverage-neutral transaction. At the same time, Bowlero upsized its existing revolving credit facility by $35 million, increasing drawdown capacity to $200 million and bolstering the company’s go-forward liquidity. The primary uses of proceeds from the transaction are to refinance the existing term loan B, repay outstanding existing borrowings under the revolving credit facility, and for general corporate purposes.
The amended credit facility includes:
- $900 million senior secured term loan B due Feb. 8, 2028, priced at SOFR + 350 bps (0% floor) and 99.5 OID, which reflects twice tightening on terms relative to initial price talk of SOFR + 350-375 bps and 98 OID.
- An upsized senior secured revolving credit facility due December 15, 2026 totaling $200 million.
Subsequent to the launch of the refinancing, Moody’s increased its ratings on the company’s corporate family rating and revolver to B1 from B2 and also issued a B1 rating for the new term loan B. S&P also issued a recovery rating of three to the new term loan B.
Brett Parker, vice chairman, president and chief financial officer of Bowlero stated, “The expediency and pricing of this transaction is a further validation of the business we have built and the exciting growth prospects ahead. Through this transaction, we were able to bolster our liquidity, maintain leverage within our long-term target and receive an upgrade from Moody’s, all in a net-leverage-neutral transaction that positions us to continue investing in and growing our business going forward.”
J.P. Morgan Securities, Wells Fargo Securities, Credit Suisse Securities and Deutsche Bank Securities served as deal managers to Bowlero in connection with the transaction. Davis Polk & Wardwell acted as legal advisor to Bowlero.