Little Traverse Bay $195 million senior notes talked at 10% area

By Paul Deckelman

New York, Nov. 1 - The Little Traverse Bay Bands Of Odawa Indians' planned $195 million offering of eight-year senior notes is expected to price to a yield in the 10% area, high yield market sources said Tuesday, with pricing expected sometime during Wednesday's or Thursday's session.

That Rule 144A offering, which is being sold without registration rights, will be brought to market by Banc of America Securities. The deal has been marketed to potential investors via a roadshow process that began last Tuesday.

The notes are non-callable for the first four years after issue. They will carry a rating of B3 from Moody's Investors Service and B from Standard & Poor's.

The Native American tribe, which owns the Victories Casino and Victories Hotel in Petoskey, Mich., plans to use the proceeds from the upcoming bond deal to fund costs associated with the new gaming facility, refinance its existing gaming business debt and fund a four-payment interest reserve.

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