By Paul A. Harris
Portland, Ore., March 14 - MotorCity Casino Hotel priced a $275 million issue of seven-year senior notes (Caa2/CCC+/) at par to yield 9 1/8% on Wednesday, according to an informed source.
The yield printed in the middle of the 9% to 9¼% yield talk.
Bank of America Merrill Lynch and Deutsche Bank Securities Inc. were the joint bookrunners.
Proceeds will be used to fund the tender offer for the company's 8% senior notes due 2013.
The issuing entity is special purpose vehicle CCM Merger, Inc.
The issuer is a multi-story gaming, hotel, dining and entertainment facility located near downtown Detroit.
| Issuer: | CCM Merger, Inc. (MotorCity Casino Hotel)
|
| Amount: | $275 million
|
| Maturity: | May 1, 2019
|
| Securities: | Senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Deutsche Bank Securities Inc.
|
| Coupon: | 9 1/8%
|
| Price: | Par
|
| Yield: | 9 1/8%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until May 1, 2016, then callable at 104.563, 102.281, par on and after May 1, 2018
|
| Equity clawback | 35% at 109.125 until May 1, 2015
|
| Trade date: | March 14
|
| Settlement date: | March 26
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9% to 9¼%
|
| Marketing: | Roadshow
|
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