Wednesday, Jan. 5, 2005 | 9:24 a.m.
CIBC World Markets is arranging a $650 million refinancing for Isle of Capri Casinos Inc., according to officials of the Biloxi, Miss.-based riverboat gambling operator.
"The new loan will give us flexibility and allow for expansion," said Rexford Yeisley, chief financial officer of Isle of Capri.
The new loan package includes a five-year, $400 million revolving credit and a six-year, $250 million term loan. The term loan may be increased if there is sufficient interest, Yeisley said. A meeting to sell the loan will be held tomorrow, he said. Pricing hasn't been set yet.
A previous $500 million CIBC-led financing in April 2002 was priced at 250 basis points more than the London interbank offered rate or Libor and would have expired by 2008, according to data compiled by Bloomberg. Yeisley said there was $207 million still outstanding under the current financing.
Isle of Capri is rated BB- by Standard & Poor's, three levels below investment grade, and an equivalent Ba3 by Moody's Investors Service.
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