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$100 million of commitments by JPMorgan Chase and Goldman Sachs

CEC Entertainment, LLC (“CEC Entertainment” “We” or “the Company”), announced today that on August 9th, it successfully amended and extended its existing revolving credit agreement.  In addition to extending the maturity date and upsizing the facility to $100 million (the “Revolving Credit Facility”), some of the key terms of the amended credit agreement include:

• $100 million of commitments ($50 million committed by JPMorgan Chase Bank and $50 million committed by Goldman Sachs Bank);
• Obligations under the Revolving Credit Facility will no longer rank senior to, but instead rank pari passu with, the Company’s existing 6.75% Senior Secured Notes due May 2026;
• Maturity date is the earlier of (i) August 9, 2029, and (ii) the date that is 91 days prior to the maturity date of the Company’s 6.75% Senior Secured Notes due May 2026 (the “Notes”) if any Notes remain outstanding on such date;
• $20 million letter of credit sub-facility;
• Beginning with the fiscal quarter ending January 26, 2024, the financial maintenance covenant is increased from 4.00:1.00 to 5.50:1.00, tested when the aggregate Revolving Facility Credit exposure exceeds 40.0% of the commitments;
• Term SOFR rate is determined by reference to the forward-looking term secured overnight financing rate for the relevant currency, plus 0.10% (either a one, three or six-month SOFR borrowing, at the Company’s option, with a 0.00% SOFR floor), plus a 4.00% margin; and
• JPMorgan Chase Bank, is the administrative and collateral agent.

As of August 12, 2024, the Company had no borrowings outstanding and $5.9 million of letters of credit issued but undrawn under the Revolving Credit Facility.

“The new revolving credit facility is a recognition of the company’s strong family-friendly restaurant and entertainment brands and places the enterprise in position for significant future growth,” said Scott Drake, Chief Financial Officer of CEC Entertainment.

JPMorgan Chase Bank, N.A., served as lead arranger with Goldman Sachs Bank USA as joint lead arranger in connection with the amendment of the Revolving Credit Facility.  Akin Gump Strauss Hauer & Feld LLP served as the Company’s legal advisors, and Latham & Watkins LLP served as legal advisors to JPMorgan Chase Bank and Goldman Sachs Bank.

About CEC Entertainment

CEC Entertainment is the owner, operator and franchisor of family entertainment and dining centers under the names “Chuck E. Cheese” (“Where A Kid Can Be A Kid”) and “Peter Piper Pizza” (“Pizza Made Fresh, Families Made Happy”) in a total of 45 states and 17 foreign countries and territories. As of April 28, 2024, we and our franchisees operated a total of 675 venues, of which 509 were Company-operated venues located in 44 states and Canada. Our franchisees operated a total of 166 venues located in 10 states and 16 foreign countries and territories, including Chile, Colombia, Costa Rica, Egypt, El Salvador, Guatemala, Honduras, Mexico, Panama, Peru, Puerto Rico, Qatar, Saudi Arabia, Suriname, Trinidad & Tobago and the United Arab Emirates.