Published on 9/12/2017 in the Prospect News High Yield Daily.
New Issue: Golden Nugget prices $1.42 billion notes in two tranches
By Paul A. Harris
Portland, Ore., Sept. 12 – Golden Nugget, Inc. priced $1,415,000,000 of high-yield notes in two tranches on Tuesday, according to a syndicate source.
The company, which was formerly known as Landry's, Inc., priced a $745 million add-on to Landry's 6¾% senior notes due Oct. 15, 2024 (B3/CCC+) at 99 to yield 6.931%.
The reoffer price came at the cheap end of the 99 to par price talk.
In addition Golden Nugget priced $670 million of eight-year senior subordinated notes (Caa1/CCC+) at par to yield 8¾%.
The yield printed at the wide end of the 8½% to 8¾% yield talk.
Jefferies LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Rabo Securities USA Inc., KeyBanc Capital Markets Inc., Citizens Capital Markets Inc. and Capital One Securities Inc. were the joint bookrunners.
Proceeds, along with a $1.08 billion term loan, will be used to refinance Golden Nugget debt and fund a shareholder distribution.
The issuer is a Houston-based diversified restaurant, hospitality and entertainment company.
| Issuer: | Golden Nugget, Inc.
|
| Amount: | $1,415,000,000
|
| Bookrunners: | Jefferies LLC, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Rabo Securities USA Inc., KeyBanc Capital Markets Inc., Citizens Capital Markets Inc., Capital One Securities Inc.
|
| Trade date: | Sept. 12
|
| Settlement date: | Sept. 26
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Senior notes
|
| Amount: | $745 million
|
| Maturity: | Oct. 15, 2024
|
| Security description: | Add-on to 6¾% senior notes due Oct. 15, 2024
|
| Coupon: | 6¾%
|
| Price: | 99
|
| Yield: | 6.931%
|
| First call: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2019, then callable at 103.375
|
| Ratings: | Moody's: B3
|
| S&P: CCC+
|
| Price talk: | 99 to par
|
| Original issue: | $600 million priced at par on Sept. 20, 2016
|
| Total issue size: | $1,345,000,000
|
|
|
| Senior subordinated notes
|
| Amount: | $670 million
|
| Maturity: | Oct. 1, 2025
|
| Security description: | Senior subordinated notes
|
| Coupon: | 8¾%
|
| Price: | Par
|
| Yield: | 8¾%
|
| First call: | Make-whole call at Treasuries plus 50 bps until Oct. 1, 2020, then callable at 104.375
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Price talk: | 8½% to 8¾%
|
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