Golden Nugget expected to downsize dual-tranche bond deal to $2.1 billion, shifting proceeds to loan

By Paul A. Harris

Portland, Ore., Jan. 11 – Fertitta Entertainment, LLC, formerly known as Golden Nugget, LLC, was heard to be in the process of downsizing its two-part offering of high-yield notes to $2.1 billion from $3.7 billion, late Tuesday.

The $1.6 billion of proceeds from the bonds would be shifted to the concurrent term loan.

The resizing of the Rule 144A and Regulation S for life bond deal is as follows, the source said: an $850 million tranche of seven-year senior secured first-lien notes (B1/B+), downsized from $1.85 billion, is being guided in the 4¾% area versus earlier guidance in the 4½% area; a $1.25 billion tranche of eight-year senior unsecured notes (Caa2/CCC+), downsized from $1.85 billion, is being guided at 6½% to 6¾% versus earlier guidance in the 6¼% area.

The notes in both tranches come with three years of call protection.

As reported, the bonds have been expected to price Thursday.

Jefferies LLC, Capital One Securities Inc., Citigroup Global Markets Inc., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, Rabo Securities USA Inc. and Truist Securities Inc. are the joint bookrunners.

With the downsizing of the notes the concurrent term loan increases to $3.45 billion from $1.85 billion.

The Las Vegas-based entertainment and hospitality company plans to use the proceeds to repay debt and for general corporate purposes.

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