Yonkers Racing plans $100 million tap of 11 3/8% notes due July 2016

By Paul A. Harris

Portland, Ore., April 27 - Yonkers Racing Corp. plans to price a $100 million fungible add-on to its 11 3/8% senior secured notes due July 15, 2016 (current ratings B1/B+) before the end of the present week, according to an informed source.

Credit Suisse Securities (USA) LLC and Merrill Lynch are the joint bookrunners for the Rule 144A for life offering.

The notes become callable on July 15, 2013 at 105.688. A special call provision allows the issuer to redeem 10% of the notes annually at 103 until the first call date.

The Yonkers, N.Y.-based horse racing and gaming company plans to use the proceeds to repay its 13¼% senior subordinated notes due 2013, to repurchase common stock warrants issued in connection with those notes and for general corporate purposes.

The original $225 million issue priced at 97.095 to yield 12% on July 13, 2009.

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