By Paul A. Harris
Portland, Ore., July 14 – Rivers Pittsburgh, operator of the Rivers Casino in Pittsburgh, priced a $415 million issue of five-year senior secured notes (B2/B) at par to yield 6 1/8% on Thursday, according to market sources.
The yield printed at the tight end of yield talk that was set in the 6¼% area and inside initial guidance in the 6½% area.
Goldman Sachs & Co. was the left bookrunner. Wells Fargo Securities LLC, Fifth Third Securities and U.S. Bancorp Investments Inc. were the joint bookrunners.
The issuing entities are special-purpose vehicles Rivers Pittsburgh Borrower LP and Rivers Pittsburgh Finance Corp.
Proceeds, together with a $50 million draw on the company’s super-priority revolver and cash on hand, will be used to pay off its existing credit facility, to redeem all its outstanding 2019 notes and to fund the repurchase by Pittsburgh Gaming Holdings of the Holdco notes and minority interests.
| Issuer: | Rivers Pittsburgh Borrower, LP and Rivers Pittsburgh Finance Corp.
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| Amount: | $415 million
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| Maturity: | Aug. 15, 2021
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| Securities: | Senior secured notes
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| Left bookrunner: | Goldman Sachs & Co.
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| Joint bookrunners: | Wells Fargo Securities LLC, Fifth Third Securities Inc., US Bancorp Investments Inc.
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| Coupon: | 6 1/8%
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| Price: | Par
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| Yield: | 6 1/8%
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| Spread: | 502 bps
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| Call: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2018, then callable at 103.063
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| Equity clawback: | 35% at 106.125 until Aug. 15, 2018
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| Trade date: | July 14
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| Settlement date: | July 25
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| Ratings: | Moody’s: B2
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| Standard & Poor’s: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6¼% area
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| Marketing: | Roadshow
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