By Christiana Sciaudone
Investing.com — Dave & Buster’s jumped 10% after the company said it would sell $500 million in senior secured notes in a private offering, due 2025.
The company expects to use the proceeds from the offering to repay drawings under its revolving credit facility. Upon the closing of the offering, Dave & Buster’s Entertainment (NASDAQ:PLAY) estimates that its available liquidity would total approximately $299.1 million, in excess of a $150 million minimum liquidity covenant under the facility.
The notes will be offered only to qualified institutional buyers.
It’s been a rough ride for the entertainment chain, which is down more than 55% for the year on shutdowns driven by the coronavirus pandemic. Many stores, a combination of sports bars and arcades, have since reopened, but with a second wave of the illness making headway, it could be tough times ahead.
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