By Paul A. Harris
Portland, Ore., Nov. 21 - Gateway Casinos & Entertainment Ltd. priced a C$200 million issue of seven-year second-priority senior secured notes at par to yield 8½% on Thursday, according to a market source.
The yield printed on top of yield talk.
TD Securities, BMO Securities, Morgan Stanley & Co. and SunTrust Robinson Humphrey are the active joint bookrunners.
Proceeds will be used to refinance the company's existing senior secured credit facility, to fund the tender for C$170 million of its 8 7/8% second-priority senior secured notes due 2017 and to fund a distribution to shareholders.
The issuer is a Burnaby, B.C.-based owner of gaming properties.
| Issuer: | Gateway Casinos & Entertainment Ltd.
|
| Amount: | C$200 million
|
| Maturity: | Nov. 26, 2020
|
| Securities: | Second-priority senior secured notes
|
| Bookrunners: | TD Securities, BMO Securities, Morgan Stanley & Co., SunTrust Robinson Humphrey
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 635 bps
|
| First call: | 2016 at 104.25
|
| Trade date: | Nov. 21
|
| Settlement date: | Nov. 26
|
| Distribution: | Rule 144A in the United States
|
| Price talk: | 8½% area
|
| Marketing: | Roadshow
|
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