Gaming & Leisure prices tender for 4.875% notes due 2020 at 102.337

By Wendy Van Sickle

Columbus, Ohio, Aug. 29 – Gaming & Leisure Properties Inc. announced pricing in a cash tender offer for the $1 billion of 4.875% senior notes due 2020 of GLP Capital, LP, its operating partnership, and GLP Financing II, Inc., a wholly owned subsidiary of the operating partnership.

The notes are guaranteed by Gaming & Leisure Properties.

The total consideration per $1,000 principal amount of notes will be $1,023.37, according to a press release issued on Thursday.

Pricing was set at 10 a.m. ET on Aug. 29 using a fixed spread of 50 basis points over the yield to maturity of the 1.625% U.S. Treasury due July 31, 2020, for a reference yield of 1.792%.

On Wednesday, the company announced the issuers took in early tenders of $782,593,000 of notes. The offer initially included a $500 million cap, but the cap was eliminated on Wednesday, and Gaming & Leisure announced all of the early tenders and any additional tenders were expected to be accepted.

Early settlement is expected on Aug. 30. The early tender time was 5 p.m. ET on Aug. 28.

The total consideration includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early tender time. Holders who tender their notes after the early tender deadline will only be eligible to receive the tender offer consideration, which is equal to the total consideration less the early tender premium.

The issuers will also pay accrued interest from and including the most recent interest payment date up to but excluding the applicable settlement date. The final settlement date is expected to be Sept. 16 for any remaining tendered notes accepted for purchase.

Tenders will be accepted in principal amounts equal to $2,000 or multiples of $1,000 in excess of that.

The tender offer was announced on Aug. 15.

The tender offer is conditioned on the issuers’ receipt of proceeds of at least $500 million from an offering of new senior notes. The company priced $400 million of 3.35% five-year senior notes and a $700 million tranche of 4% senior notes due Jan. 15, 2030 in an offering that was expected to settle on Aug. 29.

Wells Fargo Securities, LLC (704 410-4759 or 866 309-6316) is acting as dealer manager for the tender offer. The tender agent and information agent for the tender offer is D.F. King & Co., Inc. (212 269-5550 for banks or brokers or 800 283-3192 for all others or glpi@dfking.com).

The gaming-focused real estate investment trust is based in Wyomissing, Pa.

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