New Issue: Hard Rock Hotel prices $140 million 10-year notes to yield 8 7/8%

By Paul A. Harris

St. Louis, May 20 - Hard Rock Hotel Inc. sold $140 million of second lien notes due June 1, 2013 (B3/B) at par Tuesday to yield 8 7/8%, according to a syndicate source.

Price talk was for a yield in the 8 7/8% area.

Banc of America Securities was the bookrunner for the Rule 144A deal. Comerica, Hibernia and Southcoast were co-managers.

Proceeds from the offering be used to repay all outstanding debt, including funding the tender offer and consent solicitation for $120 million of 9¼% senior subordinated notes due 2005, and pay a $15 million dividend.

The issuer owns and operates the Hard Rock Hotel & Casino in Las Vegas.

Issuer:	Hard Rock Hotel Inc.
Amount:	$140 million
Maturity:	June 1, 2013
Security description:	Second lien notes
Bookrunner:	Banc of America Securities
Co-managers:	Comerica, Hibernia, Southcoast
Coupon:	8 7/8%
Price:	Par
Yield:	8 7/8%
Spread:	540 basis points
Call features:	Callable on June 1, 2008 at 104.438, then 102.958, 101.479, declining to par on June 1, 2011 and thereafter
Equity clawback:	Until June 1, 2006 for 35% at 108.875
Settlement date:	May 30, 2003
Ratings:	Moody's: B3
	Standard & Poor's: B
Rule 144A Cusip:	41163WAD8
Price talk:	8 7/8% area

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