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Greektown Holdings purchases 54.5% of 13% notes in tender offer so far
By Jennifer Chiou
New York, March 14 - Greektown Holdings, LLC announced that it used a portion of the net proceeds from its offering of $425 million of second-priority senior secured notes to purchase notes received by the early deadline in the tenders offer for the company's 13% senior secured notes due 2015.
The company bought back $209,808,000, or 54.5%, of the $385 million of outstanding 13% notes.
As previously reported, the company received insufficient consents to allow it to amend the notes. The consent deadline was 5 p.m. ET on March 10.
In addition, Greektown said it deposited sufficient funds to redeem the remaining $175,192,000 outstanding principal amount of 13% notes.
According to a press release, once those funds were deposited, the indenture was discharged and the collateral securing the notes was released.
The tender offer will expire at 11:59 p.m. ET on March 24.
Completion of the offer is subject to conditions including the receipt of financing and approval from the Michigan Gaming Control Board. The company priced a $425 million offering of eight-year notes on Feb. 26.
Greektown began the tender on Feb. 25 and also began soliciting consents to amend the indenture to, among other things, eliminate substantially all of the restrictive covenants and release the collateral securing the notes.
For each $100,000 principal amount, the company is offering a total consideration of $104,375, which includes a consent payment of $3,000 for those who tendered and delivered consents prior to the consent deadline.
Greektown will also pay accrued interest.
Jefferies LLC is the dealer manager and solicitation agent (888 708-5831 or call collect 203 363-8273). Ipreo LLC is the information agent and depositary (212 849-3880 for brokers and banks or 888 593-9546).
Detroit-based Greektown Holdings operates, through its subsidiaries, the Greektown Casino-Hotel.
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