Hollywood Casino receives notice from Shreveport bondholders, has 60 days to make tender

By Carlise Newman

Chicago, March 19 - Hollywood Casino Corp. received a notice from holders of bonds issued by its Hollywood Casino Shreveport subsidiary - giving it until May 14 to make a change of control offer for the securities as part of its merger with Penn National Gaming.

On March 14, Hollywood Shreveport and Shreveport Capital Corp. received notice from a representative of the bondholders notifying them that they did not did not make an offer to repurchase the 13% senior secured notes due 2006 and the 13% first mortgage notes due 2006, according to a filing with the Securities and Exchange Commission.

Under the bond indentures, the issuers are required to make a tender at a price equal to 101% of the outstanding total principal amount within 10 days of the merger.

The company has 60 days to make the change of control offer before a default occurs.

Hollywood Casino previously said it does not plan to make the change of control offer.

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