New Issue: LodgeNet upsizes 10-year notes to $200 million, yield 9½%

By Paul A. Harris

St. Louis, June 13 - LodgeNet Entertainment Corp. priced an upsized $200 million of senior subordinated notes due June 15, 2013 (B3/B-) Friday at par to yield 9½%, according to market sources.

Price talk was 9½%-9¾%. The deal was increased from $185 million.

Bear Stearns & Co. was the bookrunner.

Proceeds from the off-the-shelf issue will be used to repay debt.

LodgeNet is a Sioux Falls, S.D. broadband interactive services provider to lodging industry.

Issuer:	LodgeNet Entertainment Corp.
Amount:	$200 million (increased from $185 million)
Maturity:	June 15, 2013
Security description:	Senior subordinated notes
Bookrunners:	Bear Stearns
Co-managers:	UBS Warburg, CIBC World Markets
Coupon:	9½%
Price:	Par
Yield:	9½%
Spread:	637 basis points
Call features:	Callable on June 15, 2008 at 104.75, then at 103.167, 101.583, declining to par on June 15, 2011 and thereafter
Equity clawback:	Until June 15, 2006 for 35% at 109.50
Settlement date:	June 18, 2003
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	9½%-9¾%

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