By Paul A. Harris
Portland, Ore., March 31 - Ameristar Casinos Inc. priced an $800 million issue of 7½% 10-year senior notes (B3/B+/) at 99.125 to yield 7 5/8% on Thursday, according to an informed source.
The coupon, reoffer price and yield all came on top of price talk which had been revised downward from earlier yield talk of 7¾% to 7 7/8%.
Wells Fargo Securities LLC was the left lead bookrunner for the quick-to-market deal. Deutsche Bank Securities Inc., Merrill Lynch, J.P. Morgan Securities LLC and Credit Agricole CIB were the joint bookrunners.
The notes will become callable in four years at par plus 75% of the coupon, or 105.625.
The Las Vegas-based gaming and entertainment company plans to use the proceeds, in addition to proceeds from a new $1.4 billion credit facility, to fund the tender offer for its 9¼% senior notes due 2014, as well as to refinance existing facilities and repurchase stock from the majority shareholder.
| Issuer: | Ameristar Casinos Inc.
|
| Face amount: | $800 million
|
| Proceeds: | $793 million
|
| Maturity: | April 15, 2021
|
| Securities: | Senior notes
|
| Left bookrunner: | Wells Fargo Securities, LLC
|
| Joint bookrunners: | Deutsche Bank Securities Inc., Merrill Lynch, J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc.
|
| Co-managers: | Commerz Markets LLC, U.S. Bancorp Investments, Inc.
|
| Coupon: | 7½%
|
| Price: | 99.125
|
| Yield: | 7 5/8%
|
| Spread: | 416 bps
|
| First call: | 105.625 (par plus 75% of coupon)
|
| Trade date: | March 31
|
| Settlement date: | April 14
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A with registration rights and Regulation S
|
| Price talk: | 7½% coupon at 99.125 to yield 7 5/8% (revised from 7¾% to 7 7/8%)
|
| Marketing: | Quick to market
|
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