By Paul A. Harris
St. Louis, March 23 - Hard Rock Park, a theme park in Myrtle Beach, S.C., raised $305 million by pricing three issues of securities on Thursday, according to informed sources.
Deutsche Bank Securities had the books for all three tranches, which were sold via Rule 144A with no registration rights. Jefferies & Co. was the co-manager.
At the operating company level, Hard Rock Park Operations, LLC priced a $155 million issue of six-year senior secured floating-rate notes (B3/B) at par to yield six-month Libor plus 475 basis points. The yield came wide of the Libor plus 450 basis points area price talk.
Hard Rock Park Operations, LLC also priced a $100 million issue of seven-year fixed-rate junior secured notes at par to yield 12½%.
Meanwhile at the holding company level HRP Mrytle Beach Holdings, LLC priced $50 million of units comprised of one 14½% eight-year senior secured PIK note and one share of class B common stock. The units priced at par with 89.914% of the issue price designated for the note and 10.086% for the stock.
The enterprise had come to market to fund the design, development, construction and equipment of the new theme park. The developers are Fantasy Harbour Theme Park LLC and Hard Rock Cafe International Inc., a subsidiary of the London-based Rank Group.
The $155 million issue of floaters due 2012 had been marketed via an investor roadshow. On Thursday an informed source characterized the junior secured notes and PIK notes as more targeted placements.
| Enterprise: | Hard Rock Park
|
| Amount: | $305 million
|
| Bookrunner: | Deutsche Bank Securities
|
| Co-manager: | Jefferies & Co.
|
| Trade date: | March 23
|
| Settlement date: | March 30
|
| Distribution: | Rule 144A
|
|
|
| Floating-rate notes (operating company)
|
| Issuer: |
|
| Amount: | $155 million
|
| Security description: | Senior secured floating-rate notes
|
| Maturity: | April 1, 2012
|
| Coupon: | Six-month Libor plus 475 bps
|
| Price: | Par
|
| Yield: | Six-month Libor plus 475 bps
|
| Call features: | Callable after April 1, 2009 at 104, 102, 101
|
| Equity clawback: | Until April 1, 2009 for 35% at par plus the then-applicable coupon
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Price talk: | Libor plus 450 bps area
|
|
|
| Fixed-rate notes (operating company)
|
| Issuer: | Hard Rock Park Operations, LLC
|
| Amount: | $100 million
|
| Security description: | Junior secured notes
|
| Maturity: | April 1, 2013
|
| Coupon: | 12½%
|
| Price: | Par
|
| Yield: | 12½%
|
| Spread: | 773 basis points
|
| Call protection: | Four years
|
| Equity clawback: | Until April 1, 2010 for 35% at 112.50
|
|
|
| Units (holding company)
|
| Issuer: | HRP Mrytle Beach Holdings, LLC
|
| Amount: | $50 million
|
| Security description: | Units comprised of one senior secured PIK note and one share of class B common stock
|
| Unit price: | Par (89.914 on the note and 10.086 on the stock)
|
|
|
| Notes
|
| Maturity: | April 1, 2014
|
| Coupon: | 14½%
|
| Yield: | 14½%
|
| Spread: | 973 basis points
|
| Call protection: | Two years
|
| Equity clawback: | Until April 1, 2008 for 35% at 114.50
|
|
|
© 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.
