CEC Entertainment, LLC Receives $100 million of commitments from JPMorgan Chase Bank and Goldman Sachs Bank
13 Agosto 2024 - 11:03AM
CEC Entertainment, LLC (“CEC Entertainment” “We” or “the Company”),
the nationally recognized leader in family entertainment and dining
with its Chuck E. Cheese, Peter Piper Pizza brands and virtual
kitchen concept, Pasqually's Pizza & Wings, announced today
that on August 9th, it successfully amended and extended its
existing revolving credit agreement. In addition to extending the
maturity date and upsizing the facility to $100 million (the
“Revolving Credit Facility”), some of the key terms of the amended
credit agreement include:
- $100 million of commitments ($50 million committed by JPMorgan
Chase Bank and $50 million committed by Goldman Sachs Bank);
- Obligations under the Revolving Credit Facility will no longer
rank senior to, but instead rank pari passu with, the Company's
existing 6.75% Senior Secured Notes due May 2026;
- Maturity date is the earlier of (i) August 9, 2029, and (ii)
the date that is 91 days prior to the maturity date of the
Company’s 6.75% Senior Secured Notes due May 2026 (the “Notes”) if
any Notes remain outstanding on such date;
- $20 million letter of credit sub-facility;
- Beginning with the fiscal quarter ending January 26, 2024, the
financial maintenance covenant is increased from 4.00:1.00 to
5.50:1.00, tested when the aggregate Revolving Facility Credit
exposure exceeds 40.0% of the commitments;
- Term SOFR rate is determined by reference to the
forward-looking term secured overnight financing rate for the
relevant currency, plus 0.10% (either a one, three or six-month
SOFR borrowing, at the Company’s option, with a 0.00% SOFR floor),
plus a 4.00% margin; and
- JPMorgan Chase Bank, is the administrative and collateral
agent.
As of August 12, 2024, the Company had no borrowings outstanding
and $5.9 million of letters of credit issued but undrawn under the
Revolving Credit Facility.
“The new revolving credit facility is a recognition of the
company’s strong family-friendly restaurant and entertainment
brands and places the enterprise in position for significant future
growth,” said Scott Drake, Chief Financial Officer of CEC
Entertainment.
JPMorgan Chase Bank, N.A., served as lead arranger with Goldman
Sachs Bank USA as joint lead arranger in connection with the
amendment of the Revolving Credit Facility. Akin Gump Strauss Hauer
& Feld LLP served as the Company’s legal advisors, and Latham
& Watkins LLP served as legal advisors to JPMorgan Chase Bank
and Goldman Sachs Bank.
About CEC EntertainmentCEC Entertainment is the
owner, operator and franchisor of family entertainment and dining
centers under the names “Chuck E. Cheese” (“Where A Kid Can Be A
Kid”) and “Peter Piper Pizza” (“Pizza Made Fresh, Families Made
Happy”) in a total of 45 states and 17 foreign countries and
territories. As of April 28, 2024, we and our franchisees operated
a total of 675 venues, of which 509 were Company-operated venues
located in 44 states and Canada. Our franchisees operated a total
of 166 venues located in 10 states and 16 foreign countries and
territories, including Chile, Colombia, Costa Rica, Egypt, El
Salvador, Guatemala, Honduras, Mexico, Panama, Peru, Puerto Rico,
Qatar, Saudi Arabia, Suriname, Trinidad & Tobago and the United
Arab Emirates.
Contact: Alejandra Brady,
Alejandra.brady@cecentertainment.com; 945.336.3443