New Issue: Argosy Gaming sells $350 million 10-year notes to yield 7%

By Paul A. Harris

St. Louis, Feb. 5 - Argosy Gaming Co. sold $350 million of 10-year senior subordinated notes (B3/B+) Thursday at par to yield 7%, a syndicate source said.

Price talk was 6 5/8% to 6 7/8%.

Morgan Stanley ran the books on the Rule 144A/Regulation S issue. The co-managers were Banc of America Securities, Bear Stearns & Co., Credit Lyonnais, Deutsche Bank Securities and Wells Fargo Capital.

Proceeds will be used to repurchase the company's 10¾% senior subordinated notes due 2009.

The Alton, Ill., company owns and operates six casinos.

Issuer:	Argosy Gaming Co.
Amount:	$350 million
Maturity:	Jan. 15, 2014
Security description:	Senior subordinated notes
Bookrunner:	Morgan Stanley
Co-managers:	Banc of America Securities, Bear Stearns & Co., Credit Lyonnais, Deutsche Bank Securities, Wells Fargo Capital
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	282 basis points
Call features:	Callable after Jan. 15, 2009 at 103.50, 102.333, 101.167, par on Jan. 15, 2012 and thereafter
Equity clawback:	Until Jan. 15, 2007 for 35% at 107.0
Pricing date:	Feb. 5
Settlement date:	Feb. 12
Ratings:	Moody's: B3
	Standard & Poor's: B+
Price talk:	6 5/8%-6 7/8%

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