Eldorado Resorts seeks consents from holders of 7% notes due 2023

By Angela McDaniels

Tacoma, Wash., March 6 – Eldorado Resorts, Inc. began a consent solicitation for its $375 million of outstanding 7% senior notes due 2023, according to a company news release.

The company wants to amend the note indenture to increase its ability to incur credit facility debt to permit it to fully use the borrowing capacity under a new $1.75 billion credit facility that it plans to get in connection with its acquisition of Isle of Capri Casinos, Inc.

The adoption of the proposed amendment requires the consent of holders of a majority of the outstanding notes that are not owned by the company, any guarantor of the notes or any person directly or indirectly controlling or controlled by or under direct or indirect common control with the company or any guarantor of the notes.

The consent solicitation will end at 5 p.m. ET on March 14.

The consent payment is $1.50 per $1,000 principal amount of notes.

The conditions to the consent payment include receipt of the requisite consents and the completion of the merger. The consent payment will be made concurrently with satisfaction of the merger condition.

The solicitation agent is J.P. Morgan Securities LLC (212 834-4811 or 866 834-4666). The information and tabulation agent is D.F. King & Co., Inc. (800 423-2107).

Eldorado Resorts is a casino entertainment company based in Reno, Nev.

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