Dave & Buster's, Inc. Completes Refinancing of Outstanding Indebtedness
25 July 2014 - 5:33PM
Dave & Buster's, Inc. (the "Company"), a leading operator of
high volume entertainment/dining complexes, today announced it has
closed a $50 million revolving credit facility and $530 million
senior secured first lien Term Loan B. The facilities are senior
secured obligations of Dave & Buster's Holdings, Inc. and will
be guaranteed by its material subsidiaries.
The proceeds of this transaction were used to refinance in whole
the existing senior secured credit facility (of which $144 million
was outstanding as of May 4, 2014), repay $200 million aggregate
principal amount of the 11.0% senior notes due June 1, 2018, repay
all outstanding 12.25% senior discount notes issued by Dave &
Buster's Entertainment, Inc. due February 15, 2016 ($146.2 million
accreted as of May 4, 2014) and pay related premiums, interest and
expenses.
Based on current market conditions, the refinancing represents a
490 basis point reduction in interest costs and is estimated to
reduce annual cash and accrued interest expense by approximately
$22 million per year.
"Dave & Buster's improved credit profile supported by a
strong credit market enabled us to significantly reduce our cost of
debt, and in doing so, bolster our capital structure. This
opportunistic refinancing was made possible through the inherent
strength of our business model and proven track record of
generating robust financial results," said the Company's Chief
Executive Officer, Steve King.
King concluded, "We pride ourselves on differentiating Dave
& Buster's from mainstream casual dining through our 'Eat Drink
Play and Watch' brand attributes and appreciate all of our team
members who have made us the exciting entertainment and dining
destination that we are today. With this refinancing now
complete, we look forward to the next chapter in our company
story."
Jefferies & Company, Inc. and Goldman, Sachs & Co.
served as Joint Lead Arrangers and Joint Bookrunners for the
transaction.
About Dave & Buster's, Inc.
Founded in 1982 and headquartered in Dallas, Texas, Dave &
Buster's is a leading owner and operator of 69 high-volume
entertainment/dining complexes that provide both adults and
families the opportunity to "Eat Drink Play and Watch" all in one
location. We offer a full menu of "Fun American New Gourmet"
entrées and appetizers, a full selection of non-alcoholic and
alcoholic beverages, and an extensive assortment of entertainment
attractions centered around playing games and watching live sports
and other televised events. Dave & Buster's currently has
stores in 26 states and Canada. For additional information on
Dave & Buster's, please visit www.daveandbusters.com.
The statements contained in this release that are not historical
facts are forward-looking statements. These forward-looking
statements involve risks and uncertainties and, consequently, could
be affected by our level of indebtedness, general business and
economic conditions, the impact of competition, the seasonality
of the company's business, adverse weather conditions, future
commodity prices, guest and employee complaints and litigation,
fuel and utility costs, labor costs and availability, changes in
consumer and corporate spending, changes in demographic trends,
changes in governmental regulations, unfavorable publicity, our
ability to open new stores, and acts of God.
CONTACT: For Investor Relations Inquiries:
Raphael Gross of ICR
203.682.8253
For Media Relations Inquiries:
Liz DiTrapano of ICR
646.277.1226