East Valley Tourist Development reduces, restructures $275 million note offering, hikes price talk

By Paul A. Harris

St. Louis, July 31 - East Valley Tourist Development Authority downsized to $275 million from $290 million its offering of senior secured notes (B+) on Tuesday, according to market sources.

In addition the gaming company decreased the maturity of the notes to seven years from eight years, keeping call protection set at four years.

East Valley Tourist Development also increased the price talk. The notes are now expected to price with a coupon of 10½% to yield 11%. Previously the notes had been talked at the 9½% area.

The deal, which is being led by bookrunner Merrill Lynch & Co., is expected to price before the end of the week.

In a prior restructuring, the company withdrew a planned tranche of seven-year floating-rate notes.

Proceeds will be used to fund a Native American gaming facility in the Coachella Valley, near Palm Springs, Calif.

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