By Paul A. Harris
Portland, Ore., May 19 - Eldorado Resorts LLC and Eldorado Capital Corp. priced a $180 million issue of eight-year senior secured notes (B2/B+/) at par to yield 8 5/8% on Thursday, according to an informed source.
The yield printed in the middle of the 8½% to 8¾% price talk.
Bank of America Merrill Lynch ran the books.
The notes become callable at 104.313 on June 15, 2015. However, a special call provision allows the issuer to redeem up to 10% of the notes annually at 103 during the first three years.
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.
| Issuer: | Eldorado Resorts LLC and Eldorado Capital Corp.
|
| Amount: | $180 million
|
| Maturity: | June 15, 2019
|
| Securities: | Senior secured notes
|
| Bookrunner: | Bank of America Merrill Lynch
|
| Co-manager: | Capital One South Coast
|
| Coupon: | 8 5/8%
|
| Price: | Par
|
| Yield: | 8 5/8%
|
| Spread: | 585 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until June 15, 2015, then callable at 104.313, 102.156, par on and after June 15, 2017 (Special call allows issuer to redeem 10% of notes annually at 103 during first three years)
|
| Equity clawback: | 35% at 108.625 until June 15, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | May 19
|
| Settlement date: | June 1
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 8½% to 8¾%
|
| Marketing: | Roadshow
|
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