Isle Amends Credit Agreement As Financials Are Prepared
As Isle of Capri Casinos (ISLE: 8.57 0.00%) prepares for the release of its financials, the gaming company announces an amendment to their credit facility.
The casino operator has completed the amendment process and entered into an agreement with lenders to amend the senior credit facility dated July 26, 2007.
Under the terms of the amendment, interest rates on both the revolving and term loan portions of the credit facility will be increased to LIBOR +3.00% with a LIBOR floor of 2.00%.
Isle also agreed to reduce its revolving loan commitments by $100 million to $375 million.
The amendment provides Isle with leverage and interest coverage covenant relief through April 30, 2012, as well as allows for senior unsecured notes to be issued, provided proceeds are used to pay down the senior credit facility.
Dale R. Black, chief financial officer, stated, “The amendment offers us greater operating and financial flexibility and gives us more options moving forward as we seek ways to improve our balance sheet while we investigate and pursue gaming management and other growth opportunities. We thank our lenders for their continued support and confidence in these difficult economic times.”
Fiscal 2010 third quarter results will be released before the market opens on Tuesday February 23.
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