Business Context and Reporting Period
Twin River Worldwide Holdings, Inc. (now Bally’s Corp.) filed a Form 8-K covering events beginning March 16, 2020, amid uncertainty caused by the COVID-19 pandemic. The filing was signed and furnished on March 20, 2020.
Liquidity, Debt, and Key Financial Metrics
- The company had a $250 million revolving credit facility maturing May 10, 2024.
- As of March 15, 2020, there were no borrowings under the revolving facility.
- On March 16, 2020, the company drew the full $250 million and retained the proceeds as cash to increase liquidity and financial flexibility.
- The proceeds could be used for working capital, general corporate purposes, and other permitted uses.
- The company stated that it had sufficient liquidity before the draw to meet obligations under its term loan facility and its 6.75% senior notes due 2028.
- The term loan facility matures May 10, 2026.
- The filing does not provide revenue, profit, cash flow, margin, or updated cash-balance figures.
Material Changes Versus the Prior Comparable Period
The material change was the creation of $250 million of revolving-credit borrowings, which increased cash and debt by corresponding amounts relative to March 15, 2020, when the facility was undrawn.
Guidance, Outlook, Risks, and Unusual Items
The company cited COVID-19-related uncertainty in global markets and its business as the reason for proactively increasing liquidity. A furnished March 20 press release discussed the company’s response to COVID-19, including casino closures, liquidity, employee and community matters, and facility preparations. The filing does not provide quantified earnings guidance or a detailed forecast.
Important Facts to Verify
- Confirm the amount and terms of the $250 million revolving-credit draw, including interest rate, covenants, and subsequent repayment activity.
- Assess the duration and financial impact of COVID-19-related casino closures and facility preparations.
- Verify available cash, undrawn borrowing capacity, debt maturities, and compliance with credit-facility covenants after the draw.
- Review the March 20, 2020 press release furnished as Exhibit 99.1 for additional operational and liquidity disclosures.