The incremental loan, which is open to both new and existing Golden Nugget lenders, is structured with two years of call protection, an investor-friendly feature typically found in the high-yield bond market and less so in leveraged loans, sources said.įertitta is offering lenders some hefty concessions in exchange for their participation in a loan for a business that is suffering from decreased cash flow brought on by the pandemic. Jefferies, a long-standing lender to Fertitta’s businesses, is pitching the transaction to investors at an eye-watering spread of 1,400bp over Libor and a discount of 96 cents on the dollar, according to banking sources. The US$250m in incremental debt is being attached to an existing term loan that will mature in 2023 for Fertitta’s restaurant and gaming company Golden Nugget, and if successful, the outstanding facility will swell to more than US$2.5bn, according to data from Refinitiv LPC. NEW YORK, April 6 (LPC) - Texas businessman Tilman Fertitta is after US$250m from US leveraged loan investors to shore up liquidity at a time when the novel coronavirus has forced the hospitality magnate to cease operations at his casinos and restaurants, according to sources familiar with the transaction.

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