American Casino accepts early tenders for 11% notes, calls remainder

By Jennifer Chiou

New York, July 3 - American Casino & Entertainment Properties LLC said it accepted for purchase the previously announced early tenders for $233,116,000, or 69.07%, of its $337.5 million of outstanding 11% senior secured notes due 2014 jointly issued with ACEP Finance Corp.

The notes had been tendered by 5 p.m. ET on June 20, the early tender date.

Any remaining notes following the tender offer will be redeemed at par plus accrued interest.

Holders may continue to tender notes until the end of the offer at 11:59 p.m. ET on July 5.

As reported, the company is offering $1,005 per $1,000 principal amount of notes. The total payment includes a $30.00 early tender premium for each note tendered by the early tender deadline.

The company will also pay accrued interest up to but excluding the purchase date.

The tender offer is conditioned on completion of financing.

American Casino said that it and certain of its subsidiaries entered into a first-lien credit and guaranty agreement providing for senior secured loan facilities of $230 million in the aggregate. Partial proceeds will be used for the offer.

The dealer managers are Goldman Sachs & Co. (800 828-3182 or 212 357-0345) and Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527). The depositary and information agent is Global Bondholder Services Corp. (866 873-7700 or 212 430-3774).

The Las Vegas-based gaming and entertainment properties owner and operator began the offer on June 7.

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