American Casino & Entertainment gets consents from all 7.85% noteholders

By Jennifer Chiou

New York, Jan. 11 - American Casino & Entertainment Properties LLC announced the receipt of consents from holders of all of its $215 million of 7.85% senior secured notes due 2012 co-issued with American Casino & Entertainment Finance Corp., enough to amend the indenture.

The company is soliciting consents to amend the indenture to, among other things, eliminate substantially all of the restrictive covenants, certain events of default and certain other provisions contained in the indenture as well as release the security interests in the collateral securing the notes and release each guarantor from its obligations under its guarantee of the notes.

The company added that it executed a supplemental indenture.

American Casino said it will pay $1,040.75 per $1,000 principal amount of notes, including a $10.00 consent payment for those who tendered by the 5 p.m. ET Jan. 11 consent deadline.

The company will also pay accrued interest.

The offer ends at 8 a.m. ET on Jan. 29. It began on Dec. 31.

The tender is conditioned on consents from holders of a majority of notes and the satisfaction or waiver of all conditions precedent to the completion of the acquisition by W2007/ACEP Holdings, LLC of all of the outstanding membership interests in American Casino from indirect parent American Entertainment Properties Corp.

The dealer manager and solicitation agent is Bear, Stearns & Co. Inc. (877 696-BEAR or call collect 212 272-5112). The information agent and tender agent is D.F. King & Co., Inc. (call collect 212 269-5550 or 888 628-8208).

The Las Vegas-based company owns and operates four gaming and entertainment properties in southern Nevada.

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