Lucky Strike Entertainment Corporation has announced the pricing of a proposed senior secured notes offering and refinancing. The company's wholly-owned subsidiary, Kingpin Intermediate Holdings LLC, has priced an offering of $500 million aggregate principal amount of 7.250% senior secured notes due 2032. Additionally, Lucky Strike Entertainment has allocated a $1,200 million tranche of term loans, which is expected to accrue interest at a rate of term SOFR +3.25% per annum, stepping down to term SOFR +3.00% per annum on terms to be set forth in final documentation. The allocated size of the new term loan facility was increased from the previously announced $1,000 million.
The net proceeds of the offering of the notes, the new term loan facility, and a refinanced revolving credit facility are expected to be used to refinance in full the issuer’s existing term loan facilities and revolving credit facility, and to pay related fees and expenses. Any remaining net proceeds are expected to be used for general corporate purposes.
The closing of the notes offering is expected to occur on September 22, 2025, subject to the satisfaction of customary closing conditions. The notes will be, jointly and severally, unconditionally guaranteed on a senior secured basis by the company and each of the company’s subsidiaries (other than the issuer) that is a borrower or a guarantor under the new senior secured credit facilities.
The notes and the related guarantees will be secured on a first-priority basis (subject to customary exceptions) by liens on the same assets that secure the new senior secured credit facilities. Lucky Strike Entertainment is one of the world’s premier location-based entertainment platforms, with over 360 locations across North America, providing experiential offerings in bowling, amusements, water parks, and family entertainment centers. The market has reacted to these announcements by moving the company's shares -1.31% to a price of $9.82. Check out the company's full 8-K submission here.
