Golden Nugget extends tender for 8¾% notes

By Susanna Moon

Chicago, June 13 - Golden Nugget, Inc. extended its tender offer for its outstanding 8¾% senior secured notes due 2011 to 9 a.m. ET on June 14, according to a press release.

As of 5 p.m. ET on June 12, the company had tenders for $149.5 million, or 96.5%, of the notes.

The amount of tenders is unchanged from May 29, when the company extended the tender offer from May 14 to June 12.

Wachovia Securities is the dealer manager and solicitation agent for the tender offer.

The information agent and tender agent is D.F. King & Co., Inc.

On May 29, the company extended its tender offer for its $155 million of 8¾% senior secured notes due 2011 to midnight ET on June 12.

As of 5 p.m. ET on May 29, the company had tenders for $149.5 million, or 96.5%, of the notes, unchanged from May 14.

The company needed consents from holders of at least a majority of the outstanding notes in order to amend the indenture governing the notes. Accordingly, Golden Nugget said it executed a supplemental indenture effecting the proposed amendments.

As announced at the time, Golden Nugget would have paid $1,058.71 per $1,000 principal amount of notes tendered, plus accrued interest up to but excluding the payment date.

The payout was determined on May 14 using the bid-side yield to maturity of the 4¼% U.S. Treasury note due Nov. 30, 2007 plus 50 basis points.

The total consideration includes a consent payment of $30 per $1,000 principal amount of notes tendered by 5 p.m. ET on May 14, the consent deadline.

Settlement of the offer is conditioned 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.

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