Jacobs Entertainment ups payment in tender for 11 7/8% notes, extends consent deadline

New York, May 24 - Jacobs Entertainment, Inc. said it has increased the payment on offer in its cash tender offer and consent solicitation for its $148 million of 11 7/8% senior secured notes due 2009.

Jacobs will now pay 106.313% of par for the notes instead of 106.188% of par.

The company will also pay accrued interest up to but excluding the purchase date for notes.

Both prices are for notes tendered by the consent deadline and include a consent payment of 2% of par that will not be paid to holders who tender after.

Jacobs also extended the consent deadline to midnight ET on May 31 from midnight ET on May 26.

The tender ends at midnight ET on June 12.

As announced on May 12, the consent solicitation is to amend the note indenture to eliminate substantially all of the material restrictive covenants and certain events of default and related provisions and to release the collateral securing the notes.

To amend the indenture, Jacobs needs the approval of holders of a majority of the notes and to release the collateral it needs 75%.

Holders may not tender without delivering consents.

The offer is subject to Jacobs receiving consents for a majority of the notes, the completion of a sale of new notes to fund the tender and the receipt of necessary approvals from gaming authorities.

Credit Suisse Securities (USA) LLC is dealer manager (800 820-1653 or 212 325-3784). D.F. King & Co., Inc. is information agent (brokers and banks call 212 269-5550, others call 800 290-6429).

Jacobs is a Golden, Colo., gaming and pari-mutuel wagering company.

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