|Nevada Gold & Casinos, Inc. has announced that the Isle of Capri Black Hawk has obtained a senior-secured credit facility. Black Hawk is the 43%-owned joint venture of Nevada Gold & Casinos, Inc.|
The $90 million credit facility was arranged by CIBC World Markets and under the terms of it, ICBH will have a $10 million revolving credit facility and two separate $40 million term loans. The interest rate will fluctuate LIBOR plus 2.75 to LIBOR plus 4, depending on the company’s consolidated total leverage and the amount of funds borrowed.
President and CEO of Nevada Gold & Casinos, Inc., H. Thomas Winn, commented:
“We are pleased to have completed this refinancing for a number of reasons. First, the accretive nature of the transaction will benefit Isle of Capri Black Hawk’s bottom line. Second, the extended maturity and lower-cost capital offers increased flexibility and ultimately the latitude to fund any capital expenditure programs the facility may undertake. The credit facility with CIBC World Markets is the first step in a long-term financing plan that will fuel our future growth.”
As part of the transaction, Isle of Capri Black Hawk will use the lower-cost capital to refinance its $75 million, 13% first mortgage notes due 2004. ICBH will record a one-time charge in the third quarter of approximately $6.8 million