By Paul A. Harris
St. Louis, Feb. 7 - Great Canadian Gaming Corp. priced $170 million eight-year senior subordinated notes (B2/B+) at par to yield 7¼% on Wednesday, according to an informed source.
The yield came 12.5 basis points inside of the 7½% area price talk.
A source close to the deal said that it was massively oversubscribed.
Goldman Sachs & Co. led the Rule 144A for life and Regulation S issue of notes.
Proceeds will be used to repay the company's bridge loan and provide working capital, and well as for capital expenditures and for general corporate purposes.
The prospective issuer is a gaming and entertainment company based in Richmond, B.C.
| Issuer: | Great Canadian Gaming Corp.
|
| Amount: | $170 million
|
| Maturity: | Feb. 15, 2015
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Goldman Sachs & Co.
|
| Co-managers: | TD Securities, HSBC Securities
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 249 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 15, 2011, then at 103.625, 101.813, par on and after Feb. 15, 2013
|
| Equity clawback: | Until Feb. 15, 2010 for 35% at 107.25
|
| Trade date: | Feb. 7
|
| Settlement date: | Feb. 14
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 7½% area
|
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