By Paul A. Harris
St. Louis, July 13 - Yonkers Racing Corp. priced a $225 million issue of 11 3/8% seven-year senior secured notes (B1/B+) at 97.095 to yield 12% on Monday, according to an informed source.
The yield came 12.5 basis points beyond the wide end of the 11 ¾% area price talk.
Credit Suisse Securities and J.P. Morgan Securities Inc. were joint bookrunners for the Rule 144A for life issue.
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.
Proceeds will be used to repay existing debt and to terminate an interest-rate swap arrangement.
The issuer is a Yonkers, N.Y.-based horse racing and gaming company.
| Issuer: | Yonkers Racing Corp.
|
| Face amount: | $225 million
|
| Proceeds: | $218.464 million
|
| Maturity: | July 15, 2016
|
| Security description: | Senior secured notes
|
| Bookrunners: | Credit Suisse Securities and J.P. Morgan Securities Inc.
|
| Coupon: | 11 3/8%
|
| Price: | 97.095
|
| Yield: | 12%
|
| Spread: | 912 bps
|
| Call features: | Callable on July 15, 2013 at 105.688, 102.844, par on and after July 15, 2015 (10% of the issue callable at 103 during any of the first four years)
|
| Trade date: | July 13
|
| Settlement date: | July 15
|
| \Ratings: | Moody's: B1
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A for life
|
| Price talk: | 11¾% area
|
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