By Wendy Van Sickle and Paul A. Harris
Columbus, Ohio, Aug. 6 – Bally’s Corp. priced $1.5 billion of senior notes in a two-part offering (B3/CCC+/B) on Friday, according to a news release.
The deal had been downsized from $2 billion on Thursday, according to market sources.
The company priced $750 million of 5 5/8% notes due 2029 and $750 million 5 7/8% notes due 2029 in a Rule 144A and Regulation S for life offer.
The eight-year non-call-three notes launched with a 5 5/8% coupon, to be priced at discount to yield 5¾%, wide of yield talk in the 5½% area. Initial guidance was in the 5¼% area.
The 10-year notes are non-callable for five years and launched with a 5 7/8% coupon, to be priced at a discount to yield 6%, wide of yield talk in the 5¾% area. Initial guidance on the 10-year notes was in the 5½% area.
The deal was initially expected to price Thursday.
Orders were at or near the original $2 billion deal size on Thursday morning, sources previously said.
Deutsche Bank Securities Inc. is the left lead bookrunner. Goldman Sachs & Co. LLC, Barclays, Cfgrpi, Truist Securities Inc., Capfin and Fifth Third Securities Inc. are the joint bookrunners.
The issuing entities will be Premier Entertainment Sub, LLC and Premier Entertainment Finance Corp., escrow issuers that will be merged with Bally’s upon completion of the acquisition.
The Providence, R.I.-based casino entertainment company plans to use the proceeds to help fund its acquisition of Gamesys Group plc.
Concurrent with the downsizing of the notes $500 million of proceeds shifted to the concurrent term loan which upsized to $1.945 billion from $1.445 billion.
| Issuers: | Premier Entertainment Sub, LLC and Premier Entertainment Finance Corp.
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| Issue: | Senior notes
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| Amount: | $1.5 billion
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| Bookrunners: | Deutsche Bank Securities Inc. (left lead), Goldman Sachs & Co. LLC, Barclays, Cfgrpi, Truist Securities Inc., Capfin and Fifth Third Securities Inc.
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| Pricing date: | Aug. 6
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| Settlement date: | Aug. 20
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| Ratings: | Moody’s: B3
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| S&P: CCC+
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| Fitch: B
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| Distribution: | Rule 144A and Regulation S for life
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|
|
| Eight-year notes
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| Amount: | $750 million
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| Maturity: | 2029
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| Coupon: | 5 5/8%
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| Call option: | After three years
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|
|
| 10-year notes
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| Amount: | $750 million
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| Maturity: | 2031
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| Coupon: | 5 7/8%
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| Call option: | After five years
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