American Casino pulls tender offer for 11% notes, postpones new issue

By Susanna Moon

Chicago, June 11 - American Casino & Entertainment Properties LLC and ACEP Finance Corp. said they terminated the cash tender offer for their $337.5 million of outstanding 11% senior secured notes due June 15, 2014 due to market conditions.

American Casino put off pricing its senior secured notes due 2019 but continues to monitor market conditions in connection with the issue, according to a company press release.

Any notes tendered in the offer will be promptly returned to holders, the release noted.

The tender offer began May 31 and had been slated to end at 11:59 p.m. ET on June 27.

The tender offer was conditioned on a financing condition.

Prospect News reported on June 7 that American Casino withdrew its $310 million offering of seven-year senior secured notes (B3/B+) from the market. The company was not interested in going forward with a deal in an interest rate context of 9¾% to 10%, a portfolio manager commented, as reported previously.

Under the offer, holders who tendered their notes before 5 p.m. ET on June 13, the early tender date, were to receive the total payment of $1,060 for each $1,000 principal amount of notes. The total purchase price included a $30 early tender premium.

Holders who tendered their notes after the early deadline were to receive the tender offer price of $1,030 per $1,000 of notes, which is equal to the total payment less the early tender premium.

The companies also offered to pay accrued interest up to the purchase date.

Goldman Sachs & Co. (800 828-3182 or 212 357-0345), Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527) and Wells Fargo Securities, LLC (866 309-6316 or 704 715-8341) are the dealer managers for the tender offer. Global Bondholder Services Corp. (866 873-6300 or 212 430-3774) is the depositary and information agent.

The casino operator is based in Las Vegas.

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