England's Gala Coral to tap high-yield market for up to £600 million for debt refinancing

By Paul A. Harris

St. Louis, Dec. 22 - Off-track betting and gaming firm Gala Coral is expected to bring up to £600 million of senior notes with a minimum seven-year tenor during the first quarter of 2011, according to market sources.

Proceeds will be used to repay senior secured bank loans.

Goldman Sachs & Co. and the Royal Bank of Scotland are expected to be involved.

The deal has been in the pipeline since last June, sources say.

At that time the Nottingham, England-based company completed a debt restructuring that saw mezzanine debt holders convert their £558 million holdings into equity and inject a further £200 million of capital to pay down senior debt.

As a result of that restructuring Apollo Management LP, Cerberus Capital Management, Park Square Capital and York Capital became the equity sponsors, replacing Candover Investments, Cinven and Permira.

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