Eldorado Resorts talks $375 million eight-year notes to yield 7%-7¼%; pricing Thursday

By Paul A. Harris

Portland, Ore., July 15 – Eldorado Resorts, Inc. talked its $375 million offering of eight-year senior notes (Caa1/B-) to yield 7% to 7¼%, according to market sources.

Talk comes on top of initial guidance.

Books close at 1 p.m. ET on Thursday, and the Rule 144A and Regulation S with registration rights deal is set to price thereafter.

J.P. Morgan Securities LLC, Macquarie Capital, Credit Suisse Securities (USA) LLC, U.S. Bancorp Investments Inc. and KeyBanc Capital Markets are the joint bookrunners.

The notes become callable after three years at par plus 75% of the coupon.

The Reno-based casino and racetrack operator plans to use the proceeds, in addition to a new term loan, a draw on its revolver and a common stock offer, to redeem all $167 million of the Eldorado Resorts LLC/Eldorado Capital Corp. 8 5/8% senior secured notes due 2019 and all of the $570 million of the MTR Gaming Group Inc. 11½% senior secured second-lien notes due 2019. The company also plans to fund the $72.5 million purchase of all of the assets of Circus Circus Reno and a 50% interest in the Silver Legacy Joint Venture and to pay off the Silver Legacy Joint Venture $83.7 million credit facility.

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