More details surface on Golden Nugget’s $3.7 billion two-part notes offering; pricing Thursday

By Paul A. Harris

Portland, Ore., Jan. 10 – Fertitta Entertainment, LLC, formerly known as Golden Nugget, LLC, detailed its $3.7 billion two-part offering of high-yield notes on Monday, according to market sources.

The Rule 144A and Regulation S for life bond deal, split 50/50, comes in a $1.85 billion tranche of seven-year senior secured first-lien notes (expected ratings B1/B+) with initial guidance in the 4½% area and a $1.85 billion tranche of eight-year senior unsecured notes (expected ratings Caa2/CCC+) with initial guidance in the 6¼% area.

Pricing is set for Thursday.

Jefferies LLC, Capital One Securities Inc., Citigroup Global Markets Inc., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., Morgan Stanley & Co. LLC, Rabo Securities USA Inc. and Truist Securities Inc. are the joint bookrunners.

The notes in both tranches come with three years of call protection.

The Las Vegas-based entertainment and hospitality company plans to use the proceeds plus its concurrent $1.85 billion term loan to repay debt and for general corporate purposes.

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