Bank of America is in the market with a $280 million facility for Las Vegas-based Global Cash Access (GCA). The facility comprises a five-year, $20 million revolver and six-year, $260 million "B" loan. Price talk on the "B" loan is LIBOR plus 3%. Pricing on the revolver could not be determined. About $2.5 million will be drawn on the revolver at closing.
Proceeds of the facility are being used along with a $235 million note offering to back management's $435.6 million buyout of the company. M&C International, a holding company for investments made by GCA's founders, will acquire all of First Data Corp.'s equity in GCA. The company will be 95% owned by M&C International and 5% owned by B of A. The company has total debt outstanding of $497 million. Pro forma the transaction, debt-to-EBITDA is 5.6 times for the fiscal year ended December 2003.
GCA provides cash access products and services to the gaming industry. One buysider said he may have difficulty with the credit because "a lot of their business is contracted and their business model is so narrow." Robert Fry, GCA's cfo, did not return calls.