Hong Kong's Galaxy Entertainment begins discounted tender offers for floaters, 9 7/8% notes

By Angela McDaniels

Tacoma, Wash., Dec. 2 - Galaxy Entertainment Group Ltd. said its subsidiary, Galaxy Entertainment Finance Co. Ltd., has begun tender offers to purchase any and all of its $250 million guaranteed senior floating-rate notes due 2010 and up to $100 million of its $350 million 9 7/8% guaranteed senior notes due 2012.

The company is offering $530 for each $1,000 principal amount of the floating-rate notes, according to company news release.

The purchase price for the 9 7/8% notes will be $375 to $450 per $1,000 principal amount and will be determined through a modified Dutch auction.

The payouts will include $30 for each $1,000 principal amount of notes tendered by the early tender date. All holders will also receive accrued interest up to but excluding the payment date, which is expected to be Jan. 2.

The early tender date is 6 p.m. ET on Dec. 12, and the tender offers will expire at midnight ET on Dec. 29.

The maximum amount Galaxy Entertainment will pay under the offers, excluding interest, is $180 million. The company said it will fund the offers with internal resources.

The purpose of the tender offers is to reduce outstanding debt and ongoing debt service obligations, according to the release.

Neither tender offer is conditioned on a minimum amount of notes being tendered.

Merrill Lynch & Co. is the dealer manager, and Bondholder Communications Group is the information and tender agent.

Galaxy Entertainment is based in Hong Kong and operates casinos, hotels and entertainment facilities in Macau through its subsidiary, Galaxy Casino SA.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.