Majestic Star hits the road Friday with $270 million seven-year deal via Jefferies

By Paul A. Harris

St. Louis, Sept. 2 - Majestic Star Casino, LLC starts a roadshow Friday for an offering of $270 million of senior secured notes due 2010, according to an informed source.

The deal is expected to price during the week of Sept. 15, the source added.

Jefferies & Co. is bookrunner on the Rule 144A deal.

The notes will be issued jointly by Majestic Star Casino, LLC and Majestic Star Capital Corp., will be non-callable for four years and will contain a three-year equity clawback.

The Gary, Ind.-based gaming company also plans to obtain an $80 million credit facility.

Proceeds will be used to fund the tender offer for Majestic Star Casino, LLC's $130 million 10 7/8% senior secured notes due 2006 and subsidiary Majestic Investor Holdings, LLC's $151.767 million 11.653% senior secured notes due 2007.

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