Golden Entertainment Announces Repricing of Term Loan
Golden Entertainment (NASDAQ: GDEN) has announced a repricing and allocation of its existing term loan credit facility, due in 2030. The amendment, pending final documentation and customary closing conditions, will reduce the applicable margin by 50 basis points. Base rate loans will now bear interest at the base rate plus 1.25%, and SOFR loans at the SOFR rate plus 2.25%. Additionally, the Term SOFR Adjustment of 10 basis points will be eliminated, resulting in a total interest rate reduction of 60 basis points. Santander and Deutsche Bank Securities served as lead arrangers, with legal counsel from Latham & Watkins and Cahill Gordon & Reindel.
- Interest rate reduction by 60 basis points on the term loan facility.
- Lower applicable margin for base rate loans (1.25%) and SOFR loans (2.25%).
- Repricing could result in lower interest expenses, improving financial health.
- Repricing and allocation indicate effective debt management by the company.
- The repricing amendment is still subject to execution of definitive documentation and customary closing conditions, which presents a risk of delay or non-completion.
Insights
Golden Entertainment's recent repricing of its term loan credit facility due 2030 brings a strategic financial maneuver into focus. By reducing the applicable margin by
Such reduction in borrowing costs can substantially improve the company's net income by reducing interest expenses. For retail investors, this can mean improved earnings per share (EPS) in the medium to long term. Moreover, this financial move might free up capital, allowing Golden Entertainment to invest more in growth initiatives or shareholder returns.
However, investors should note that while the repricing improves financial efficiency, it doesn't directly impact operational performance. Thus, any long-term benefits will depend on how Golden Entertainment utilizes the financial flexibility gained from this initiative.
Santander and Deutsche Bank Securities acted as lead arrangers on the transaction. Latham & Watkins acted as legal counsel to Golden Entertainment and Cahill Gordon & Reindel acted as legal counsel to the lead arrangers.
Forward-Looking Statements
This press release contains forward-looking statements regarding future events and the Company’s future results that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements can generally be identified by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “project,” “potential,” “seek,” “should,” “think,” “will,” “would” and similar expressions, or they may use future dates. In addition, forward-looking statements in this press release include, without limitation statements regarding the execution or effectiveness of the repricing amendment, the expected terms thereof and satisfaction of closing conditions thereto; and other characterizations of future events or circumstances as well as other statements that are not statements of historical fact. Forward-looking statements are based on the Company’s current expectations and assumptions regarding the terms and closing of the repricing amendment and other future conditions. These forward-looking statements are subject to assumptions, risks and uncertainties that may change at any time, and readers are therefore cautioned that actual results could differ materially from those expressed in any forward-looking statements. Factors that could cause the actual results to differ materially include: changes in national, regional and local economic and market conditions; legislative and regulatory matters (including the cost of compliance or failure to comply with applicable laws and regulations); increases in gaming taxes and fees in the jurisdictions in which the Company operates; litigation; increased competition; reliance on key personnel (including our Chief Executive Officer, President and Chief Financial Officer, and Chief Operating Officer); the Company’s ability to comply with covenants in its debt instruments; terrorist incidents; natural disasters; severe weather conditions (including weather or road conditions that limit access to the Company’s properties); the effects of environmental and structural building conditions; the effects of disruptions to the Company’s information technology and other systems and infrastructure; factors affecting the gaming, entertainment and hospitality industries generally; and other risks and uncertainties discussed in the Company’s filings with the SEC, including the “Risk Factors” sections of the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update any forward-looking statements as a result of new information, future developments or otherwise. All forward-looking statements in this press release are qualified in their entirety by this cautionary statement.
About Golden Entertainment
Golden Entertainment owns and operates a diversified entertainment platform, consisting of a portfolio of gaming and hospitality assets that focus on casino and branded tavern operations. Golden Entertainment owns eight casinos and 71 gaming taverns in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240523731664/en/
Golden Entertainment, Inc.
Charles H. Protell
President and Chief Financial Officer
(702) 893-7777
Investor Relations
Richard Land
JCIR
(212) 835-8500 or gden@jcir.com
Source: Golden Entertainment, Inc.
FAQ
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