Wheeling Island Gaming to launch $125 million eight-year notes Dec. 4

By Paul A. Harris

St. Louis, Mo., Nov. 28 - Wheeling Island Gaming, Inc. will launch an offering of $125 million senior of eight-year notes Dec. 4, a syndicate source told Prospect News. Bookrunner will be Banc of America Securities with Wells Fargo as co-lead manager. Pricing is scheduled for Dec. 12.

Proceeds will be used to repurchase shares of the company's common stock owned by WHX Entertainment, for a total of approximately $105 million, and to repay existing debt.

The notes will be non-callable for four years and be offered under Rule 144A. Ratings are pending.

The company, a first-time issuer, operates the Wheeling Downs Racetrack and Gaming Center, according to the syndicate source, who added that it is planning to expand by adding 550 slot machines and a 150 room hotel.

In conjunction with the notes, Wheeling Downs expects to receive commitments for a new $50 million revolver, which will be used to make the expansion.

The company is located in Wheeling, W.Va.

On Nov. 19 WHX Corp. announced a modified dutch auction tender offer and consent solicitation for up to $123 million principal amount of its outstanding 10½% senior notes due 2005.

WHX said the offer will cost between $57.81 million and $65.19 million with finance coming from the $105 million it will receive from Wheeling for the stock.

End

© 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.