American Entertainment downsizes to $200 million, introduces covenant changes

By Paul A. Harris

St. Louis, Sept. 28 - American Entertainment Properties Corp. has downsized to $200 million from $250 million its offering of eight-year senior floating-rate notes (Caal/B-), according to a buyside source.

Meanwhile there are also covenant changes in the deal, the source added. The restricted payments basket has been reset to zero but builds at 100% of net income.

Pro forma on the deal is Libor plus 500 basis points, the source added.

Bear Stearns & Co. has the books for the Rule 144A offering.

Proceeds, together with cash and cash equivalents, were earmarked to pay a dividend to a newly formed corporation that will become the company's parent.

American Entertainment Properties is the parent of Las Vegas-based American Casino & Entertainment Properties.

The ultimate parent is American Real Estate Partners, LP (AREP), a Delaware master limited partnership, the units of which are traded on the New York Stock Exchange.

As of Dec. 31, 2005, affiliates of Carl Icahn owned 86.5% of the outstanding preferred units and about 90% of the outstanding depositary units of AREP.

Icahn is the chairman of the board of directors of American Property Investors, Inc., AREP's general partner.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.