Published on 5/21/2009 in the Prospect News High Yield Daily.
New Issue: Ameristar Casinos prices $150 million tap of 9¼% notes due 2014 at par
By Paul A. Harris
St. Louis, May 21 - Ameristar Casinos, Inc. priced a $150 million add-on to its 9¼% senior unsecured notes due June 1, 2014 at par on Thursday, according to an informed source.
The deal priced on top of the price talk.
It was driven on reverse inquiry, according to a high-yield mutual fund manager who believes that only those parties involved in the reverse inquiry received substantial allocations.
Banc of America Securities LLC, Wachovia Securities LLC and Deutsche Bank Securities Inc. ran the books for the fungible add-on.
Proceeds will be used to prepay and permanently retire a portion of the Las Vegas-based gaming and entertainment company's revolver.
Ameristar priced the original $500 million issue at 97.097 to yield 10% on May 12, 2008.
| Issuer: | Ameristar Casinos, Inc.
|
| Amount: | $150 million
|
| Maturity: | June 1, 2014
|
| Security description: | Add-on to 9¼% senior unsecured notes due June 1, 2014 (fungible)
|
| Bookrunners: | Banc of America Securities LLC, Wachovia Securities LLC, Deutsche Bank Securities Inc.
|
| Co-managers: | Calyon Securities, Comerica Investments
|
| Coupon: | 9¼%
|
| Price: | Par
|
| Yield: | 9¼%
|
| Spread: | 726 bps
|
| Call features: | Make-whole at Treasuries plus 50 bps until Dec. 1, 2011, then at 104.625, 102.313, par on and after Dec. 1, 2013 (call protection increased to 2.5 years from two years)
|
| Equity clawback: | 35% at 109.25 until June 1, 2011
|
| Change-of-control put: | 101%
|
| Trade date: | May 21
|
| Settlement date: | May 27
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | Par
|
| Original issue: | $500 million; priced at 97.097 to yield 10% on May 12, 2008
|
| Total issue size: | $650 million
|
© 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.
