Yonkers Racing seeks consents to allow issuance of more 11 3/8% notes

By Jennifer Chiou

New York, April 20 - Yonkers Racing Corp. announced the start of a consent solicitation for its 11 3/8% senior secured notes due 2016.

The Yonkers, N.Y.-based horse racing and gaming company said that the proposed amendments would permit it to issue up to an additional $100 million of the notes and use a portion of the proceeds to redeem all of its 13¼% senior subordinated notes due 2013, including accrued pay-in-kind interest and a premium, and repurchase all of its class A common stock warrants.

The changes also include the modification of an additional provision in the indenture that restricts Yonkers' ability to form and make investments with certain unrestricted subsidiaries.

In a news release, the company said that it believes current market conditions may provide an opportunity to refinance the subordinated notes on favorable terms, including a lower interest rate.

The solicitation will expire at 5 p.m. ET on April 28.

If the company obtains consents from holders of at least a majority of the notes and completes its private offering of the additional notes, it will pay a consent fee of $10.00 in cash for each $1,000 of notes.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the solicitation agents, and D.F. King & Co., Inc. is the tabulation agent (212 493-6996 for banks and brokers or 800 487-4870).

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