By Paul A. Harris
St. Louis, May 22 - MTR Gaming Group, Inc. priced a $125 million issue of six-year senior subordinated notes (B3/B-) at par to yield 9% on Monday, according to an informed source.
The issue price and yield came on top of the price talk.
Jefferies & Co. ran the books for the notes, which were issued via Rule 144A with registration rights and Regulation S. Wells Fargo Securities was the co-manager.
Proceeds will be used to complete construction of the Presque Isle Downs facility, to pay the $50 million slots license fee upon licensing of Presque Isle Downs, to repay debt and for general corporate purposes.
The issuer is a Chester, W.Va.-based owner, operator and developer of gaming, horse racing and hotel properties.
| Issuer: | MTR Gaming Group, Inc.
|
| Amount: | $125 million
|
| Maturity: | June 1, 2012
|
| Security description: | Senior subordinated notes
|
| Bookrunner: | Jefferies & Co
|
| Co-manager: | Wells Fargo Securities
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 409 bps
|
| Call features: | Callable on or after June 1, 2009 at 104.50, 102.25, par on and after June 1, 2011
|
| Equity clawback: | Until June 1, 2009 for 35% at 109.0
|
| Trade date: | May 22
|
| Settlement date: | May 25
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A with registration rights/Regulation S
|
| Price talk: | 9% area at par
|
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