By Paul A. Harris
St. Louis, Jan. 25 - Boyd Gaming Corp. priced a $250 million issue of 7 1/8% 10-year notes (B1/B+) at 99.50 to yield 7.196% in a quick-to-market Wednesday transaction, according to an informed source.
The yield came toward the wide end of the 7 1/8% to 7¼% price talk. The sale generated $248.75 million of proceeds.
Banc of America Securities LLC and Deutsche Bank Securities were joint bookrunners for the registered notes. The co-lead managers were Lehman Brothers, Bear Stearns & Co., Wachovia Securities and CIBC World Markets. The co-managers were Calyon Securities, Commerzbank, JP Morgan and Wells Fargo Securities.
In a Wednesday press release, the company stated that it will use the proceeds to repay a portion of its revolving credit facility but could also use a portion of the proceeds for general corporate purposes, including capital expenditures.
Las Vegas-based Boyd Gaming is a diversified owner and operator of 19 gaming entertainment properties located in Nevada, New Jersey, Mississippi, Illinois, Indiana and Louisiana.
| Issuer: | Boyd Gaming Corp.
|
| Face amount: | $250 million
|
| Proceeds: | $248.75 million
|
| Maturity: | Feb. 1, 2009
|
| Security description: | Senior subordinated notes
|
| Bookrunners: | Banc of America Securities LLC, Deutsche Bank Securities
|
| Coupon: | 7 1/8%
|
| Price: | 99.50
|
| Yield: | 7.196%
|
| Spread: | 272 basis points
|
| Call features: | Make-whole call at Treasuries plus 50 basis points until Feb. 1, 2011, then callable at 103.563, 102.375, 101.188, par on and after Feb. 1, 2014
|
| Equity clawback: | Until Feb. 1, 2009 for 35% at 107.125
|
| Trade date: | Jan. 25
|
| Settlement date: | Jan. 30
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | SEC registered
|
| Price talk: | 7 1/8%-7¼%
|
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