CCM Merger (MotorCity) talks $275 million 5.5-year notes to yield 6½%-6¾%; pricing Thursday

By Paul A. Harris

Portland, Ore., Oct. 29 – CCM Merger Inc., which owns and operates MotorCity Casino Hotel in Detroit, talked its $275 million offering of 5.5-year senior notes (Caa1/B+) to yield 6½% to 6¾%, according to a syndicate source.

Official talk comes tight to early guidance in the high-6% area.

Books close at 2:30 p.m. ET on Thursday, and the deal is set to price thereafter, representing a foreshortened timeline, as the offer had previously been expected to remain in the market until Friday.

BofA Securities Inc. is the left bookrunner. Fifth Third Securities Inc. and Comerica Securities Inc. are the joint bookrunners.

The Rule 144A for life and Regulation S notes become callable after two years at par plus 50% of the coupon.

Proceeds, together with a new senior secured credit facility and cash on hand, will be used to refinance the existing senior secured credit facility, refinance all outstanding 6% senior notes due 2022 and fund a $60 million special dividend.

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