Dave & Buster's Enters Material Agreement, New Financial Obligation

TL;DR

**PLAY just took on a new financial obligation; details pending but it's a material event.**

AI Summary

Dave & Buster's Entertainment, Inc. filed an 8-K on January 19, 2024, indicating an "Entry into a Material Definitive Agreement" and the "Creation of a Direct Financial Obligation." While the filing doesn't detail the specific agreement or obligation, it signals that the company has entered into a significant new financial commitment. This matters to investors because such agreements can impact the company's financial health, future cash flow, and potentially its stock valuation, depending on the nature and terms of the obligation.

Why It Matters

This filing signals a new, potentially significant financial commitment for Dave & Buster's, which could affect its balance sheet and future profitability. Investors should monitor for details to understand the impact on the company's financial stability and growth prospects.

Risk Assessment

Risk Level: medium — The filing indicates a new financial obligation without providing specific details, creating uncertainty about its potential impact on the company's financial health.

Analyst Insight

A smart investor would await further disclosures from Dave & Buster's regarding the specifics of the 'Material Definitive Agreement' and 'Direct Financial Obligation' to assess their financial implications before making any investment decisions.

Key Players & Entities

• Dave & Buster's Entertainment, Inc. (company) — the registrant filing the 8-K
• January 19, 2024 (date) — date of the earliest event reported in the 8-K
• 001-35664 (other) — Commission File Number for Dave & Buster's
• PLAY (other) — trading symbol for Dave & Buster's Common Stock
• NASDAQ Stock Market LLC (other) — exchange where Dave & Buster's Common Stock is registered

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value PLAY NASDAQ Stock Market
• $897,750,000 — ans in an aggregate principal amount of $897,750,000 (the "2024 Term B Loans") and (ii) redu

Filing Documents

• tm243635d1_8k.htm (8-K) — 33KB
• tm243635d1_ex10-1.htm (EX-10.1) — 1595KB
• tm243635d1_ex99-1.htm (EX-99.1) — 9KB
• tm243635d1_ex99-1img001.jpg (GRAPHIC) — 6KB
• 0001104659-24-005236.txt ( ) — 2152KB
• play-20240119.xsd (EX-101.SCH) — 3KB
• play-20240119_lab.xml (EX-101.LAB) — 33KB
• play-20240119_pre.xml (EX-101.PRE) — 22KB
• tm243635d1_8k_htm.xml (XML) — 3KB

01

Item 1.01 Entry into a Material Definitive Agreement. On January 19, 2024 (the "Amendment Effective Date"), Dave & Buster's, Inc. (the "Borrower"), a wholly owned subsidiary of Dave & Buster's Entertainment, Inc. (the "Company"), Dave & Buster's Holdings, Inc. ("Holdings"), as parent guarantor, the subsidiary guarantors party thereto, the lenders party thereto and Deutsche Bank AG New York Branch, as administrative agent and collateral agent (the "Agent") entered into the Second Amendment to Credit Agreement (the "Amendment"), which amended that certain Credit Agreement, dated June 29, 2022 (the "Credit Agreement" and the Credit Agreement, as amended by the First Amendment to Credit Agreement dated as of June 30, 2023 and as further amended by the Amendment, the "Amended Credit Agreement"), by and among the Borrower, Holdings, the subsidiary guarantors party thereto, the lenders party thereto and the Agent. The Amendment, among other things, (i) provides for a new tranche of term loans in an aggregate principal amount of $897,750,000 (the "2024 Term B Loans") and (ii) reduces the interest rate margin applicable to revolving loans outstanding under the Credit Agreement by 0.50% and term loans outstanding under the Credit Agreement by at least 0.50% with an additional 0.25% step-down if a rating of B1/B+ or higher from Moody's and S&P is achieved (which will step back up if such rating is subsequently not maintained). The 2024 Term B Loans will refinance in full the term loans outstanding immediately prior to the Amendment Effective Date (the "Existing Term B Loans"). The 2024 Term B Loans have terms substantially the same as the terms of the Existing Term B Loans (including, but not limited to, the maturity date previously applicable to the Existing Term B Loans, which is 7 years from the original closing date of the Credit Agreement), except as summarized herein. The proceeds from the 2024 Term B Loans were used to refinance in full the Existing Term B Loans.

03

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information set forth in Item 1.01 above is incorporated into this Item 2.03 by reference.

01

Item 7.01. Regulation FD Disclosure. On January 19, 2024, the Company issued a press release regarding entry into the Amendment. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated into this Item 7.01 by reference.

Financial Statements and Exhibits

Financial Statements and Exhibits . (d) Exhibits. Exhibit No. Description 10.1 Second Amendment to Credit Agreement, dated as of January 19, 2024, by and among Dave & Buster's, Inc., Dave & Buster's Holdings, Inc., the subsidiary guarantors party thereto, the lenders party thereto, and Deutsche Bank AG New York Branch. 99.1 Press Release of Dave & Buster's Entertainment, Inc., dated January 19, 2024. 104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. January 19, 2024 DAVE & BUSTER'S ENTERTAINMENT, INC. By: /s/ Bryan McCrory Bryan McCrory Vice President, General Counsel and Secretary

View Full Filing

View this 8-K filing on SEC EDGAR