By Paul A. Harris
St. Louis, Nov. 5 - Herbst Gaming Inc. priced an upsized $170 million issue of 10-year senior subordinated notes (B3/B-) at par to yield 7% Friday, according to an informed source.
Price talk was in the 7 1/8% area.
Lehman Brothers ran the books for the Rule 144A issue.
Proceeds will be used to help fund the $287 million acquisition of Grace Entertainment's riverboat casino assets in Missouri and Iowa.
The issue was upsized from $150 million.
Herbst is a Las Vegas gaming company.
| Issuer: | Herbst Gaming Inc.
|
| Amount: | $170 million (increased from $150 million)
|
| Maturity: | Nov. 15, 2014
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Lehman Brothers
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 282 basis points
|
| Call features: | Callable after Nov. 15, 2009 at 103.50, 102.33, 101.167, par on or after Nov. 15, 2012
|
| Equity clawback: | Until Nov. 15, 2007 for 35% at 107.0
|
| Pricing date: | Nov. 5
|
| Settlement date: | Nov. 22
|
| Ratings: | Moody's B3
|
| Standard & Poor's B-
|
| Price talk: | 7 1/8% area
|
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