Greektown fails to receive consents for 13% notes, plans redemption

New York, March 11 - Greektown Holdings, LLC said it received insufficient consents to allow it to amend its $385 million of 13% senior secured notes due 2015.

The company will accept notes tendered by the consent deadline of 5 p.m. ET on March 10. Payment will be made on March 14.

In addition, Greektown said it plans to issue a notice of redemption on March 14 for all the notes remaining outstanding.

Meanwhile the tender offer will continue until it expires at 11:59 p.m. ET on March 24.

Completion of the offer is subject to conditions including the receipt of financing and approval from the Michigan Gaming Control Board. The company priced a $425 million offering of eight-year notes on Feb. 26.

As previously reported, Greektown began the tender on Feb. 25 and also began soliciting consents to amend the indenture to, among other things, eliminate substantially all of the restrictive covenants and release the collateral securing the notes.

For each $100,000 principal amount, the company was offering a total consideration of $104,375, which includes a consent payment of $3,000 for those who tendered and delivered consents prior to the consent deadline.

Greektown will also pay accrued interest.

Jefferies LLC is the dealer manager and solicitation agent (888 708-5831 or call collect 203 363-8273). Ipreo LLC is the information agent and depositary (212 849-3880 for brokers and banks or 888 593-9546).

Detroit-based Greektown Holdings operates, through its subsidiaries, the Greektown Casino-Hotel.

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