Published on 10/18/2007 in the Prospect News High Yield Daily.
New Issue: Indianapolis Downs prices upsized $425 million notes in two tranches
By Paul A. Harris
St. Louis, Oct. 18 - Indianapolis Downs, LLC, in conjunction with Indiana Downs Capital Corp., priced an upsized $425 million two-part notes transaction on Thursday, according to an informed source.
The Shelbyville, Ind., racetrack, off-track betting and gaming company priced an upsized $375 million tranche of five-year senior secured notes (B3/B) at par to yield 11%. The tranche was upsized from $345 million and priced on top of price talk.
In addition the company priced a $50 million tranche of six-year senior subordinated secured PIK notes at par to yield 15½%. The yield was printed on top of price talk, which had been lowered on Thursday from the 16½% area.
Jefferies & Co. ran the books for the Rule 144A and Regulation S for life issue, the overall size of which was upsized from $395 million.
Proceeds will be used to pay the first installment of a gaming license fee, as well as to repay debt and build a gaming facility.
| Issuers: | Indianapolis Downs, LLC and Indiana Downs Capital Corp.
|
| Total amount: | $425 million (upsized from $395 million)
|
| Bookrunner: | Jefferies & Co.
|
| Trade date: | Oct. 18
|
| Settlement date: | Oct. 30
|
| Distribution: | Rule 144A and Regulation S for life
|
|
|
| Cash-pay notes
|
| Amount: | $375 million (upsized from $345 million)
|
| Maturity: | Nov. 1, 2012
|
| Security description: | Senior secured notes
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Call features: | Make-whole at Treasuries plus 50 bps until Nov. 1, 2010, then at 105.50, par on or after Nov. 1, 2011
|
| Equity clawback: | Until Nov. 1, 2010 for 35% at 111.00
|
| Change-of-control put: | 101.0
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Price talk: | 11% area
|
|
|
| PIK notes
|
| Amount: | $50 million
|
| Maturity: | Nov. 1, 2013
|
| Security description: | Senior subordinated secured PIK notes
|
| Coupon: | 15½%
|
| Price: | Par
|
| Yield: | 15½%
|
| Call features: | Make-whole at Treasuries plus 50 bps until to Nov. 1, 2010, then at 107.75, par on or after Nov. 1, 2011
|
| Equity clawback: | Until Nov. 1, 2010 for 35% at 115.50
|
| Change-of-control put: | 101.0
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Price talk: | 15½% (lowered from 16½% area)
|
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