Boyd Gaming plans to use bank debt to fund note redemption

By Sara Rosenberg

New York, Aug. 12 - Boyd Gaming Corp. plans to use $122.2 million of the availability on its credit facility to redeem the remaining outstanding balance of its 9.25% senior notes due October 2003.

The credit facility consists of a $400 million revolver due June 2007 and a $100 million term loan due June 2008. At June 30, $99 million was outstanding under the term loan, $101.5 million outstanding under the revolver and $25 million was allocated to support a letter of credit to the agent bank for Borgata's bank credit agreement, according to a filing with the Securities and Exchange Commission. The Las Vegas gaming company is required to maintain $50 million of unused availability under its revolver until Borgata is complete.

During the six month period ended June 30, Boyd repaid $29 million of its bank credit facility.

On July 31, the credit agreement was amended to increase the limitations on investments, dividends and certain other payments from a total limit during the term of the credit facility to an annual limit for each year of the term of the credit facility, the filing added.

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