Published on 2/3/2005 in the Prospect News High Yield Daily.
New Issue: Mohegan Tribal Gaming prices $400 million in two restructured tranches
By Paul A. Harris
St. Louis, Feb. 3 - Mohegan Tribal Gaming Authority priced $400 million of high-yield bonds in two restructured tranches, in a quick-to-market transaction on Thursday, according to syndicate sources.
The Uncasville, Conn., casino owner-operator priced an upsized $250 million of eight-year notes (expected Ba2/confirmed BB-) at par to yield 6 1/8%, on top of the 6 1/8% area price talk. The tranche was upsized from $200 million.
The company also priced a downsized $150 million issue of 10-year senior subordinated notes (Ba3/B+) at par to yield 6 7/8%, on the wide end of the 6¾% area price talk. The tranche was downsized from $200 million.
Citigroup, Banc of America Securities LLC and SG Corporate & Investment Banking were the bookrunners for the Rule 144A/Regulation S transaction. The co-managers were The Royal Bank of Scotland, Calyon Securities, KeyBank, Wells Fargo Securities and Commerzbank.
Proceeds will be used to repay bank debt.
| Issuer: | Mohegan Tribal Gaming Authority
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| Amount: | $400 million
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| Bookrunners: | Citigroup, Banc of America Securities, SG Corporate & Investment Banking
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| Co-managers: | The Royal Bank of Scotland, Calyon Securities, KeyBank, Wells Fargo Securities, Commerzbank
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| Trade date: | Feb. 3
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| Settlement date: | Feb. 8
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|
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| Senior tranche
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| Amount: | $250 million (increased from $200 million)
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| Maturity: | Feb. 15, 2013
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| Security description: | Senior notes
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| Coupon: | 6 1/8%
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| Price: | Par
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| Yield: | 6 1/8%
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| Spread: | 207 basis points
|
| Call features: | Make-whole call at Treasuries plus 50 basis points until Feb. 15, 2009, then callable at 103.063, 101.531, par on and after Feb. 15, 2011
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| Ratings: | Moody's Ba2 expected
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| Standard & Poor's: BB- confirmed
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| Price talk: | 6 1/8% area
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|
|
| Subordinated tranche
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| Amount: | $150 million (decreased from $200 million)
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| Maturity: | Feb. 15, 2015
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| Security description: | Senior subordinated notes
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| Coupon: | 6 7/8%
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| Price: | Par
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| Yield: | 6 7/8%
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| Spread: | 272 basis points
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| Call features: | Make-whole call at Treasuries plus 50 basis points until Feb. 15, 2010, then callable at 103.438, 102.292, 101.146, par on and after Feb. 15, 2013
|
| Ratings: | Moody's: Ba3
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| Standard & Poor's: B+
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| Price talk: | 6¾% area
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