By Paul A. Harris
Portland, Ore., April 12 – Midwest Gaming Borrower, LLC and co-issuer Midwest Gaming Finance Corp. priced a $750 million issue of eight-year senior secured notes (B3/B+) at par to yield 4 7/8% in a Monday drive-by, according to market sources.
The yield printed in the middle of yield talk in the 4 7/8% area. Initial guidance was in the low 5% area.
Timing was accelerated. The deal was initially scheduled to remain in the market until Tuesday.
The deal was playing to around $2 billion of orders, a trader said.
Wells Fargo Securities LLC was the left bookrunner. Joint bookrunners were BofA Securities Inc., Fifth Third Securities Inc., CIBC World Markets Corp, U.S. Bancorp Investments Inc. and Capital One Securities Inc.
The Chicago-based gaming company plans to use the proceeds plus a new super priority revolver and cash on hand to repay its existing term loan A, its revolver and holdco debt.
| Issuers: | Midwest Gaming Borrower, LLC and Midwest Gaming Finance Corp.
|
| Amount: | $750 million
|
| Maturity: | May 1, 2029
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Wells Fargo Securities LLC
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| Joint bookrunners: | BofA Securities Inc., Fifth Third Securities Inc., CIBC World Markets Corp, U.S. Bancorp Investments Inc. and Capital One Securities Inc.
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Spread: | 399 bps
|
| First call: | May 1, 2024 at 102.438
|
| Special call: | 10% of issue annually at 103 during non-call period
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| Trade date: | April 12
|
| Settlement date: | April 26
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4 7/8% area
|
| Marketing: | Drive-by
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