Choctaw Resort prices tender offer for 9¼% notes

New York, Oct. 28 - Choctaw Resort Development Enterprise said it priced its tender offer for its 9¼% senior notes due 2009.

Holders who tendered by the consent deadline will receive $1,072.67 per $1,000 principal amount, including the $30 consent payment. Holders who tender after that deadline but before the expiration will receive $1,042.67 per $1,000.

Choctaw will also pay accrued interest up to but excluding the settlement date.

Choctaw said on Oct. 25 that holders had tendered $195.775 million or 97.89% of its 9¼% senior notes due 2009 by the consent deadline in its cash tender offer and consent solicitation for the notes.

As a result, the issuer has sufficient consents to amend the note indenture. However the amendments will not become operative until Choctaw buys the notes.

As announced on Oct. 11, the payment per $1,000 principal amount of the notes will be set as the present value on the initial payment date of the $1,046.25 redemption price of the notes on their first call date of April 1, 2005 plus the present value of the notes' interest payments through the call date, discounted at a rate of 50 basis points over the bid-side yield on the 1 5/8% U.S. Treasury note due March 31, 2005, minus accrued interest from the payment date up to the settlement date.

The total includes a $30.00 per $1,000 principal amount consent payment that will only be paid to holders who tender with consents by the consent deadline of 5 p.m. ET on Oct. 22.

The tender will be priced at 2 p.m. ET on Oct. 28 unless the offer is extended, in which case the price will be fixed no later than the 10th business day before expiration.

The tender expires at midnight ET on Nov. 10.

The consent solicitation is to amend the note indenture in order to eliminate substantially all of the restrictive covenants.

Holders may not tender without delivering consents or vice versa.

The Choctaw, Miss., casino operator for the Mississippi Band of Choctaw Indians said the offer is subject to various conditions including that all necessary approvals have been obtained from the tribe and the enterprise and the condition that appropriate financing is obtained. Choctaw Resort intends to fund the tender offer with proceeds from an offering of debt securities and borrowings under a new senior credit facility.

Banc of America Securities LLC is dealer manager and solicitation agent (contact High Yield Special Products at 888 292-0070 or call collect 704 388-9217).

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