Herbst Gaming $45 million notes talked at 104.5, pricing Friday via Lehman

By Paul A. Harris

St. Louis, Jan. 23 - Price talk of 104.5 emerged Thursday on Herbst Gaming Inc.'s $45 million add-on to its 10¾% senior secured notes due 2008 (B2/B), according to an informed source.

The Rule 144A deal is expected to price Friday morning, the source added.

Lehman Brothers is the bookrunner.

The notes are callable on Sept. 1, 2005 at 105.375, one year later at 102.688 and at par on Sept. 1, 2007 and thereafter. They contain an equity clawback until Sept. 1, 2004 for 35% at 110.75.

The original $170 million issue priced on Aug. 24, 2001.

Proceeds will be used to fund the acquisition of Anchor Coin's slot route and related assets from International Gaming Technology.

The issuer is a Las Vegas-based gaming firm.

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