Great Canadian Gaming plans to hold roadshow for C$400 million 10-year senior notes

By Cristal Cody

Prospect News, July 5 - Great Canadian Gaming Corp. (Ba3) plans to hold a roadshow for a high-yield offering of C$400 million of senior notes, an informed bond source said on Thursday.

The roadshow is scheduled for Vancouver, B.C., on July 11, New York and Boston on July 12 and July 13 and Toronto on July 16 and July 17.

The deal will be offered in Canada via a private placement and in the United States by Rule 144A.

Scotia Capital Inc. and HSBC Capital (Canada) Inc. are the bookrunners. BMO Capital Markets Corp., CIBC World Markets Inc. and RBC Capital Markets Corp. are joint lead managers. National Bank Financial Inc. is the co-manager.

The issue's guarantors are current and future material restructured subsidiaries and certain other restricted subsidiaries of Great Canadian.

The notes due 2022 are non-callable for five years. The issue has a 101% change-of-control put, an equity clawback for up to 35% in the first three years at par plus the coupon and a Canada call at the Canadian bond yield plus 100 basis points.

Proceeds will be used to repay the company's tranche B term loans, to repurchase or redeem its senior subordinated notes, to terminate and settle derivative debt and for general corporate purposes.

The company said in a news release that it plans to use the proceeds to refinance its U.S. dollar-denominated $161.1 million senior secured tranche B term loans due February 2014 and $170 million senior subordinated notes due February 2015 and their related cross-currency interest rate swaps. The company will start a cash tender offer and consent solicitation for the subordinated notes.

Great Canadian Gaming also will buy back and cancel C$100 million of its outstanding shares for C$10.00 a share in an offer open until Aug. 15.

If either the tender offer or the sale of the 10-year notes is unsuccessful, the company may cancel, postpone or modify its refinancing plans.

The Richmond, B.C.-based gaming, entertainment and hospitality company has operations in Canada and the United States.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.