Yonkers Racing plans seven-year secured deal to repay debt, end swap

By Paul Deckelman

New York, July 6 - Yonkers Racing Corp. plans to sell $225 million of seven-year senior secured notes, high yield syndicate sources said Monday.

The deal will be brought to market by bookrunners Credit Suisse and J.P. Morgan Securities Inc. as a Rule 144A for life offering.

Timing is to be determined, although one primaryside source said he thought the deal might come to market later this week.

The new notes will be non-callable for the first four years, although the company will have the option to redeem up to 10% of the notes at 103% of face value in each of those first four years.

There will be a change-of-control put at 101.

Moody's Investors' Service has assigned a B1 rating to the proposed notes, while Standard & Poor's gave them a B+ rating.

The Yonkers, N.Y.-based company - which operates the venerable Yonkers Raceway harness horse racing track and, since 2006, the affiliated Empire City slot machine "racino" in Yonkers, N.Y., located in suburban Westchester County just north of the New York City line, and thus, the closest gaming facility to the city - plans to use the proceeds of the bond offering to repay existing debt and to terminate an interest-rate swap arrangement.

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