East Valley Tourist returns to market with $275 million eight-year notes

By Paul A. Harris

St. Louis, Nov. 2 - The East Valley Tourist Development Authority is returning to the high-yield market with a $275 million offering of eight-year senior secured notes (B1/B), according to a market source, who added that Merrill Lynch & Co. is expected to lead the deal.

An informed source said that the offering is expected to come to market during the Nov. 5 week.

Proceeds will be used to refinance existing debt, as well as to finance casino and hotel improvements and fund payments to the Cabazon Band of Mission Indians, owners of the Fantasy Springs casino near Palm Springs, Calif.

In early August, the company abandoned its attempt to place a downsized and restructured $275 million offering.

Merrill Lynch & Co. was the bookrunner for that deal, which was downsized from $290 million, while the maturity of the abandoned notes had been decreased to seven years from eight years. Price talk on the pulled deal increased to a 10½% coupon, at a discount, to yield 11%. Earlier those notes had been talked at the 9½% area.

The prospective issuer is an Indio, Calif.-based tribal gaming company.

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