River Rock gets tenders of $149.9 million 9¾% notes by early deadline

New York, Sept. 19 - River Rock Entertainment Authority said it received tenders of $149.9 million principal amount of its 9¾% senior notes due 2011 by the early tender deadline, far more than the maximum size of the offer.

At its previous announcement on Sept. 10, the authority extended the early tender deadline to 5 p.m. ET on Sept. 16 from Sept. 10.

River Rock began the offer on Aug. 27 and said it would purchase up to $30 million principal amount of the notes.

The authority is offering $1,051.25 per $1,000 principal amount of the notes, including a $30.00 early tender premium.

River Rock will only pay the early tender premium to holders who tender by the early deadline.

The offer ends on Sept. 24.

Holders will also receive accrued interest up to but excluding the settlement date, expected to be Sept. 25.

If more than $30 million of notes are tendered, the authority will accept securities on a pro rata basis.

The tender is one of a series of transactions intended to provide funds for all or some capital improvements projects on the Dry Creek Rancheria Band of Pomo Indians' trust and adjacent lands that serve essential governmental purposes, including road, drainage and landscaping infrastructure projects, design and engineering services, land purchase and the repurchase of notes previously issued to finance the projects.

Most of the projects are required to make the current operations more efficient and improve services to the tribe's reservation and its gaming and entertainment facility.

The transactions will allow the tribe to complete part of the preparatory site work for its proposed resort development project, including a new and expanded Tuscan-themed casino and hotel with luxury resort amenities.

The required $84.8 million of financing will come from cash on hand, a new $20 million 9¾% unsecured term loan due Nov. 1, 2011 and other debt. The loan can be increased by $5 million. It will also be exchangeable for notes.

Merrill Lynch & Co. is dealer manager (888 654-8637). Global Bondholder Services Corp. is depositary and information agent (866 794-2200).

River Rock Entertainment is a Geyserville, Calif., casino operator controlled by the Dry Creek Rancheria Band of Pomo Indians.

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