Isle of Capri receives tenders of $328.3 million 8¾% notes, calls rest

New York, March 16 - Isle of Capri Casinos Inc. said it received tenders of $328.3 million principal amount of its 8¾% senior subordinated notes due 2009, 84.2% of the outstanding amount.

It also said it is calling the remaining notes. The redemption will take place on April 15 at 104.375% of par plus accrued interest.

The amount tendered is up marginally from the response received by the consents deadline of 5 p.m. ET on March 2. At that point Isle of Capri said it had received valid tenders and consents for $328.2 million principal amount or 84.2% of the $390 million outstanding 8¾% notes.

Isle of Capri said on Feb. 18 that it had begun an offer to purchase any and all its $390 million of outstanding 8¾% notes and was also soliciting noteholder consents to proposed indenture changes.

The company set a consent deadline of 5 p.m. ET on March 2 and an expiration deadline of 5 p.m. ET on March 16, with both deadlines subject to possible extension.

Isle of Capri, a Biloxi, Miss.-based gaming operator, set a purchase price for its notes of $1,041.98 per $1,000 principal amount of notes validly tendered by the offer expiration, not revoked and subsequently accepted for purchase by the company. Holders who validly tender their notes will also be paid accrued and unpaid interest up to, but not including, the date of payment for the notes.

Holders who tendered their notes by the consent deadline and thus delivered their consent to the proposed indenture changes also received a $10 per $1,000 principal amount consent payment.

Holders tendering after the consent deadline will receive the basic purchase price, plus interest, but will not receive the consent payment.

Holders could not tender their notes without also delivering consents or deliver consents without also tendering.

The company said one of the conditions to which the tender offer and consent solicitation will be subject is Isle of Capri Casinos having available funds, to be raised from a private offering of $425 million of new senior subordinated notes due 2014. That condition has been met with the sale of an upsized $500 million deal.

Deutsche Bank Securities Inc. (call collect at 212 250-4270) and CIBC World Markets Corp. (call 800 274-2746) are the dealer-managers and the solicitation agents for the consent solicitation. D. F. King & Co. Inc. is the information agent (call 800 669-5550).

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