American Casino begins cash tender offer for 11% senior secured notes

By Marisa Wong

Madison, Wis., May 31 - American Casino & Entertainment Properties LLC and ACEP Finance Corp. began a cash tender offer to purchase any and all of their outstanding 11% senior secured notes due June 15, 2014. The outstanding principal amount of the notes is $337.5 million, according to a news release.

The tender offer is scheduled to expire at 11:59 p.m. ET on June 27.

Holders who tender their notes before 5 p.m. ET on June 13, the early tender date, will receive the total consideration of $1,060 for each $1,000 principal amount of notes. The total consideration includes a $30 early tender premium.

Holders who tender their notes after the early tender date will receive the tender offer consideration of $1,030 per $1,000 of notes, which is equal to the total consideration less the early tender premium.

The companies will also pay accrued interest up to the purchase date.

The tender offer is subject to certain conditions, including a financing condition.

If not all notes are tendered in the offer, the company may decide to discharge the indenture governing the notes as soon as practicable after the early tender date.

Goldman Sachs & Co. (800 828-3182 or 212 357-0345), Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527) and Wells Fargo Securities, LLC (866 309-6316 or 704 715-8341) are the dealer managers for the tender offer. Global Bondholder Services Corp. (866 873-6300 or 212 430-3774) is the depositary and information agent.

The casino operator is based in Las Vegas.

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