Lucky Strike Entertainment Corporation has announced the pricing of its 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. These notes will be sold to investors at a price of 100% of the principal amount and will bear an interest rate of 7.250% per annum.
In addition to the notes offering, the company has allocated a $1,200 million tranche of term loans maturing in 2032, 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. Notably, the allocated size of the new term loan facility was increased from the previously announced $1,000 million.
The net proceeds from 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 by liens on the same assets that secure the new senior secured credit facilities.
It's important to note that the foregoing transactions are subject to market and other conditions, and there can be no assurance that the company will be able to successfully complete the transactions, including the notes and/or the new term loan facility, on the terms described above, or at all.
The notes will not be registered under the securities act or any state securities law and may not be offered or sold in the United States absent registration or an applicable exemption from registration under the securities act and applicable state securities laws.
Today the company's shares have moved 1.22% to a price of $9.94. For the full picture, make sure to review Lucky Strike Entertainment Corp's 8-K report.
