Bally's Corp 8-K

What Happened

• Bally’s Corporation (Bally’s) announced in an 8-K that on February 11, 2026 it entered into a Term Loan Credit Agreement providing $1.1 billion of senior secured term loans. The facility was arranged by Ares Agent Services, Ares Management LLC, Platinum Birch Ltd. and Angelo, Gordon & Co., L.P. and was funded in full on the closing date.

Key Details

• $1.1 billion total funded on Feb 11, 2026: $600.0M closing date term loan + $500.0M delayed draw term loan (the Delayed Draw was also funded).
• Maturity: February 11, 2031, unless Bally’s unsecured bonds due 2029 remain outstanding on March 1, 2029, in which case the Term Loans mature March 1, 2029.
• Interest and payment features: borrower may choose ABR loans (Alternate Base Rate) + 6.50% (floor 3.00%) or Term SOFR loans + 7.50% (floor 3.00%); Bally’s may elect to pay up to 3.50% per annum of accrued interest “in kind.”
• Security, covenants and fees: loans are guaranteed by certain subsidiaries and secured on a pari passu basis with Bally’s existing revolver; the agreement includes customary covenants (limits on additional debt, dividends, asset sales, investments and liens), mandatory prepayment triggers, stepped prepayment premiums (make-whole before 18 months; 4% between 18–24 months; 2% between 24–36 months; certain reductions to 1%), and a 3.00% exit fee on repayment of the Delayed Draw Term Loans.

Why It Matters

• This transaction provides Bally’s with $1.1B of secured term debt and immediate liquidity but also adds fixed financing costs and contractual restrictions. Investors should note the relatively high spreads on the loans (ABR+6.50% or SOFR+7.50%), the ability to pay part of interest in kind, and the covenant package that may limit capital actions. The maturity is linked to the status of Bally’s 2029 unsecured bonds, which could accelerate the Term Loan maturity to 2029, affecting refinancing timing and capital structure.