Published on 7/16/2015 in the Prospect News High Yield Daily.
New Issue: Eldorado Resorts prices $375 million 7% eight-year notes at par
By Paul A. Harris
Portland, Ore., July 16 – Eldorado Resorts, Inc. priced a $375 million issue of eight-year senior notes (Caa1/B-) at par to yield 7% on Thursday, according to a market source.
The yield printed at the tight end of the 7% to 7¼% yield talk. That talk came, Wednesday, on top of initial guidance, market sources said.
J.P. Morgan Securities LLC, Macquarie Capital, Credit Suisse Securities (USA) LLC, U.S. Bancorp Investments Inc. and KeyBanc Capital Markets were the joint bookrunners.
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.
| Issuer: | Eldorado Resorts Inc.
|
| Amount: | $375 million
|
| Maturity: | Aug. 1, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Macquarie Capital, Credit Suisse Securities (USA) LLC, U.S. Bancorp Investments Inc., KeyBanc Capital Markets
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 479 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until Aug. 1, 2018, then callable at 105.25
|
| Equity clawback: | 35% at 107 until Aug. 1, 2018
|
| Trade date: | July 16
|
| Settlement date: | July 23
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7% to 7¼%
|
| Marketing: | Roadshow
|
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