JPMorgan is leading a $160 million of loans backing the leveraged buyout of Dave & Buster's by private equity sponsor Wellspring Capital Management. The deal is comprised of a five-year, $60 million revolver and a seven-year, $100 million term loan "B." The deal launched last Thursday. Pricing on the two tranches is LIBOR plus 2 3/4%. Dave & Busters agreed to be acquired by Wellspring on Dec. 8. The deal is expected to close in the second quarter of this year.
Moody's Investors Service has assigned a rating a rating of B1 to both the revolving credit facility and the "B" loan. Additionally, Moody's has assigned a corporate family rating of B2. Based in Dallas, Dave & Busters offers restaurant service and a variety of games and entertainment in a family-oriented atmosphere. The restaurants operate throughout the United States, with additional locations in Mexico City and Toronto. A call to Dave & Busters was not returned nor was a call to Wellspring.