By Paul A. Harris
Portland, Ore., Aug. 14 - Graton Resort & Casino priced a $450 million issue of seven-year senior secured notes (B3/B/) at par to yield 9 5/8% on Tuesday, according to a syndicate source.
The yield printed at the tight end of price talk that had been set in the 9¾% area.
Bank of America Merrill Lynch, Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC were the joint bookrunners.
The issuing entity is the Graton Economic Development Authority, a wholly owned, unincorporated governmental instrumentality of the Federated Indians of Graton Rancheria, a federally recognized Indian tribe.
The tribe plans to develop and operate a casino and entertainment facility located in Sonoma County, Calif.
Proceeds, together with borrowings under the authority's term loan, will be used to fund the costs associated with designing, developing, constructing and opening the casino and to repay certain debt owed to the developer.
| Issuer: | Graton Economic Development Authority (Graton Resort & Casino)
|
| Amount: | $450 million
|
| Maturity: | Sept. 1, 2019
|
| Securities: | Senior secured notes
|
| Bookrunners: | Bank of America Merrill Lynch, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC
|
| Co-lead manager: | Jefferies & Co.
|
| Co-manager: | Citigroup Global Markets Inc.
|
| Coupon: | 9 5/8%
|
| Price: | Par
|
| Yield: | 9 5/8%
|
| Spread: | 849 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Sept. 1, 2015, then callable at 107.219, 104.813, 102.406, par on and after Sept. 1, 2018
|
| Trade date: | Aug. 14
|
| Settlement date: | Aug. 22
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9¾% area
|
| Marketing: | Roadshow
|
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