Isle of Capri Casinos to buy back $142.8 million 7% notes in oversubscribed tender offer

By Angela McDaniels

Tacoma, Wash., Feb. 11 - Isle of Capri Casinos, Inc. received tenders for $323.39 million, or 64.68%, of its 7% senior subordinated notes due 2014 during a tender offer that expired Feb. 11, according to a company news release.

The offer to purchase up to $140 million of the notes began on Jan. 13.

On Wednesday, Isle of Capri said it is exercising its right to purchase up to an additional 2% of the maximum tender amount, bringing the total amount of notes to be purchased to $142.8 million.

For each $1,000 principal amount, noteholders will receive $580 for notes tendered by the early tender deadline of Jan. 27 and $550 for notes tendered after that time but before the offer expiration.

The company will also pay accrued interest up to but excluding the settlement date, which will be no later than Feb. 13.

Because the amount of notes tendered exceeds the cap, notes will be accepted on a pro rata basis.

The company said the proration factor is 0.44157, meaning that $441.57 principal amount of notes will be accepted for every $1,000 principal amount tendered. After application of the pro rata calculation, Isle of Capri will round the principal amount of the prorated notes down to the nearest $1,000.

Credit Suisse Securities (USA) LLC (800 820-1653 or 212 325-4951, attn: liability management desk) was dealer manager, and D.F. King & Co., Inc. (800 431-9643 or 212 269-5550) was tender agent and information agent.

Isle of Capri is based in Biloxi, Miss., and develops, owns and operates casinos.

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