Seneca Gaming talks $200 million add-on to 7¼% notes at 96.50 to 97.50

By Paul A. Harris

St. Louis, May 17 - Seneca Gaming Corp. has talked the $200 add-on to its 7¼% senior notes due May 1, 2012 (B1/BB-) at 96.50 to 97.50, according to a syndicate source.

Books close at 12 p.m. ET on Wednesday, with pricing expected thereafter.

Merrill Lynch & Co. and Banc of America Securities LLC are joint bookrunners for the Rule 144A with registration rights offering. Well Fargo Securities is the co-manager.

The notes become callable after May 1, 2008 at 103.625, with the call premium declining annually thereafter to 101.813, and to par on or after May 1, 2010. The notes also contain an equity clawback until May 1, 2007 for 35% at 107.25.

The notes are to be exchanged into a single $500 million issue under one Cusip and indenture.

Proceeds will be used to repay the company's $80 million term loan from Freemantle Ltd., to prefund construction and for general corporate purposes.

The original $300 million issue priced at par on April 29, 2004.

Seneca Gaming is a western New York tribal gaming company.

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