Golden Nugget solicits tenders, consents for 8¾% notes due 2011

By Laura Lutz

Des Moines, May 1 - Golden Nugget, Inc. launched a tender offer and consent solicitation for its $155 million outstanding principal amount of 8¾% senior secured notes due 2011.

The offer will expire at midnight ET on May 29. The consent deadline is 5 p.m. ET on May 14.

For each $1,000 principal amount of notes tendered, the payout will be based on the bid-side yield to maturity of the 4.25% U.S. Treasury note due Nov. 30, 2007 plus 50 basis points.

The total consideration will include a consent payment of $30 per $1,000 principal amount of notes. Notes tendered after the consent deadline will not receive the consent payment.

Holders will also receive accrued interest for the notes.

The company expects pricing to be determined at 2 p.m. ET on May 14.

Receipt of tenders and consents from holders of a majority of the notes will be required for settlement of the offer.

Settlement also depends on the refinancing of the company's existing senior secured credit facility, which is expected to include a new first lien senior secured credit facility of up to $380 million and a new second lien senior secured term loan facility of up to $165 million.

Wachovia Securities (866 309-6316 or collect 704 715-8431) is the dealer manager and solicitation agent. D.F. King & Co., Inc. (800 758-5378 or collect 212 269-5550) is the information agent.

Golden Nugget is a hotel and casino operator based in Las Vegas.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.