New Issue: Rock Ohio Caesars sells $380 million 12 1/8% seven-year notes at 99.266 to yield 12½%

By Paul A. Harris

Portland, Ore., Aug. 11 - Rock Ohio Caesars LLC priced a $380 million issue of 12 1/8% seven-year second-lien notes (Caa1/B/) at 98.266 to yield 12½% on Thursday, according to an informed source.

The yield printed at the wide end of the 12¼% to 12½% yield talk. The reoffer price came in line with discount talk of about 1.75 points.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Citadel Securities LLC were the joint bookrunners.

The Cleveland-based casino entertainment company plans to use the proceeds to fund the development of two casinos.

Issuers:	ROC Finance LLC and ROC Finance 1 Corp.
Face amount:	$380 million
Proceeds:	$373.41 million
Maturity:	Sept. 1, 2018
Securities:	Second-lien notes
Bookrunners:	Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Citadel Securities LLC
Coupon:	12 1/8%
Price:	98.266
Yield:	12½%
Spread:	1,095 bps
First call:	Callable on Sept. 1, 2014 at 109.094
Make-whole call:	Treasuries plus 50 bps until Sept. 1, 2014
Equity clawback:	35% at 112.125 until Sept. 1, 2014
Trade date:	Aug. 11
Settlement date:	Aug. 19
Ratings:	Moody's: Caa1
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	12¼% to 12½% yield with about 1.75 points OID
Marketing:	Roadshow

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