Jacobs Entertainment extends tender for 11 7/8% notes

By Jennifer Chiou

New York, June 12 - Jacobs Entertainment, Inc. announced the extension of its tender offer for its $148 million of 11 7/8% senior secured notes due 2009.

The tender ends at midnight ET on June 15, instead of midnight ET on June 12.

As of 5 p.m. ET on June 12, the company said it received tenders from holders of $142 million or 96% of the notes.

By the consent deadline of 5 p.m. ET on May 31, the company had received the required consents to amend the notes indenture after obtaining tenders with consents for $142 million or 95.95% of the securities.

The company entered into a supplemental indenture that will become effective when it buys the notes.

At its previous announcement on May 24, Jacobs said it increased the payment on offer and will now pay 106.313% of par for the notes instead of 106.188% of par.

The company will also pay accrued interest up to but excluding the purchase date for notes.

Both prices are for notes tendered by the consent deadline and include a consent payment of 2% of par that will not be paid to holders who tender after.

Jacobs also extended the consent deadline to May 31 from midnight ET on May 26.

As announced on May 12, the consent solicitation is to amend the note indenture to eliminate substantially all of the material restrictive covenants and certain events of default and related provisions and to release the collateral securing the notes.

To amend the indenture, Jacobs needs the approval of holders of a majority of the notes and to release the collateral it needs 75%.

Holders may not tender without delivering consents.

The offer is subject to Jacobs receiving consents for a majority of the notes, the completion of a sale of new notes to fund the tender and the receipt of necessary approvals from gaming authorities.

Credit Suisse Securities (USA) LLC is dealer manager (800 820-1653 or 212 325-3784). D.F. King & Co., Inc. is information agent (brokers and banks call 212 269-5550; others call 800 290-6429).

Jacobs is a Golden, Colo., gaming and pari-mutuel wagering company.

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