New Issue: Herbst Gaming upsized $160 million eight-year notes yield 8¼%

By Paul A. Harris

St. Louis, May 27 - Herbst Gaming Inc. priced an upsized $160 million issue of eight-year senior subordinated notes (B3/B-) Thursday at 99.284 with an 8 1/8% coupon to yield 8¼%, according to market sources.

Price talk was in the area of 8¼%.

Lehman Brothers ran the books for the Rule 144A issue. The co-managers were Banc of America Securities, Piper Jaffray and Wells Fargo Capital.

Proceeds will be used to help fund the tender for $217 million of the company's 10¾% senior secured notes due 2008.

The issuer is a Las Vegas-based gaming company.

Issuer:	Herbst Gaming Inc.
Amount:	$160 million, increased from $150 million
Maturity:	June 1, 2012
Security description:	Senior subordinated notes
Bookrunner:	Lehman Brothers
Co-managers:	Banc of America Securities, Piper Jaffray, Wells Fargo Capital
Coupon:	8 1/8%
Price:	99.284
Yield:	8¼%
Spread:	380 basis points
Call features:	Callable after June 1, 2008 at 104.063, 102.032, par on or after June 1, 2010
Equity clawback:	Until June 1, 2007 for 35% at 108.125
Pricing date:	May 27
Settlement date:	June 11
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	8¼% area

© 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.