Eldorado talks $180 million eight-year notes with 8½%-8¾% yield

By Paul A. Harris

Portland, Ore., May 18 - Eldorado Resorts LLC and Eldorado Capital Corp. talked a $180 million offering of eight-year senior secured notes (B2/B+) with an 8½% to 8¾% yield on Wednesday, according to an informed source.

The book closes at 11 a.m. ET on Thursday.

Bank of America Merrill Lynch has the books for the Rule 144A for life offering. Capital One is the co-manager.

The notes come with four years of call protection. However, a special call provision allows the issuer to redeem up to 10% of the notes annually at 103 during the first three years.

The notes also feature a 101% poison put.

Proceeds, together with a new credit facility and cash on hand, will be used to purchase any or all of the outstanding first mortgage notes due 2012 (the Shreveport notes), as well as to purchase any or all of the 9% senior notes due 2014 (the Eldorado notes), and to retire the outstanding preferred interest in the Louisiana Partnership.

Eldorado Resorts owns and operates the Eldorado Shreveport Hotel and Casino, a Las Vegas-style resort and dockside casino complex in Shreveport, La., and Eldorado Hotel and Casino in Reno, Nev.

The company is based in Reno, Nev.

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