Dave & Buster’s Entertainment Inc., the chain that features sports bars and arcade games, launched a junk bond sale yesterday that would give the company more liquidity and provide relief from Covid-19 pressures, Reuters reported. The company is looking to borrow $500 million through the five-year secured note offering. Proceeds will repay a term loan and credit line, and be used for general corporate purposes. As part of the transaction, the firm is suspending certain maintenance covenants through April 2022, adding a $150 million minimum liquidity covenant and extending the maturity of its revolving credit facility by two years to 2024, according to a news release. Upon closing, the company will have about $299 million in available liquidity. Pandemic shutdowns sent revenue at the chain plunging, and it risked breaching the terms of a $500 million credit line. A waiver from lenders was set to expire Nov. 1, and the company has previously warned that it may need to file chapter 11 to restructure its obligations. Dave & Buster’s has been showing improving sales in October.
