New Issue: Herbst Gaming add-on slightly upsized to $47 million, yields 9.512%

By Paul A. Harris

St. Louis, Jan. 24 - Herbst Gaming Inc. slightly upsized to $47 million from $45 million its add on to its 10¾% senior secured notes due Sept. 1, 2008 (B2/B) and priced it at 104.50 to yield 9.512%, according to a source close to the deal.

Lehman Brothers was the bookrunner.

Proceeds will be used to fund the acquisition of Anchor Coin's slot route and related assets from International Gaming Technology.

The issuer is a Las Vegas-based gaming firm.

Issuer:	Herbst Gaming Inc.
Amount:	$47 million (increased from $45 million)
Securities description:	Rule 144A add-on to the 10¾% senior secured notes due Sept. 1, 2008
Bookrunner:	Lehman Brothers
Maturity:	Sept. 1, 2008
Coupon:	10¾%
Price:	104.50
Yield to worst:	9.512%
Spread:	675 basis points
Call features:	Callable on Sept. 1, 2005 at 105.375, then at 102.688, declining to par on Sept. 1, 2007 and thereafter
Equity clawback:	Until Sept. 1, 2004 for 35% at 110.75
Settlement date:	Feb. 7, 2003 (T+10)
Ratings:	Moody's: B2
	Standard & Poor's: B
Rule 144A Cusip:	42703XAC3
Price talk:	104.5

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