England's Gala Coral Group resizes debt financing, talks downsized £625 million bonds

By Paul A. Harris

Portland, Ore., May 19 - Gala Coral Group, Ltd. resized its debt financing, shifting £25 million to its bank loan from its two-part bond offering on Thursday, according to an informed source.

The Nottingham, England-based gaming and off-track betting company downsized its two-part bond deal to £625 million of notes from £650 million and upsized its term loan B to £825 million from £800 million.

The company also re-sized the bond tranches and set price talk.

An upsized £350 million tranche of seven-year senior secured notes (B2/B+/BB), which come with three years of call protection, is talked with a yield in the 8¾% area. The secured tranche was upsized from £250 million.

Meanwhile a downsized £275 million tranche of eight-year senior unsecured notes (Caa2/CCC+/CCC), which come with four years of call protection, is talked with a yield in the 11½% area. The unsecured tranche was downsized from £400 million.

The books close at 10 a.m. ET on Monday, and the notes are set to price thereafter.

Credit Suisse AG and Barclays plc are the global coordinators among a syndicate of banks that includes Deutsche Bank AG, Goldman Sachs International, Morgan Stanley and HSBC.

The company plans to use the proceeds to repay its senior secured bank loans.

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