New Issue: Old Evangeline $120.7 million proceeds seven-year notes yield 13.448%

By Paul A. Harris

St. Louis, Feb. 19 - The Old Evangeline Downs, LLC and The Old Evangeline Downs Capital Corp. jointly issued $120.7 million proceeds of 13% senior secured notes due March 1, 2010 (Caa1/B-) and priced them Wednesday at 98.0 to yield 13.448%, according to a syndicate source.

Jefferies & Co. was the bookrunner.

The deal was increased from a planned size of $110 million.

Proceeds from the Rule 144A deal will be used to help fund construction and development of a pari-mutuel horse racetrack with slot machines and to refinance existing debt.

The company is a Lafayette, La.-based subsidiary of Peninsula Gaming.

Issuer:	The Old Evangeline Downs, LLC/The Old Evangeline Downs Capital Corp.
Amount:	$123.2 million (principal), $120.7 million (proceeds)
Maturity:	March 1, 2010
Security description:	Senior secured notes
Bookrunner:	Jefferies & Co.
Coupon:	13%
Price:	98.0
Yield:	13.448%
Contingent interest rate:	After casino opens, up to 5.0% of cash flow capped at $2.5 million per annum
Call features:	Callable on March 1, 2007 at 106.5, 103.25, par on March 1, 2009 and thereafter
Excess cash flow call:	After casino opens, using up to 50% of excess cash flow capped at $10 million per year; put at 101 for up to $2.5 million per year
Equity clawback:	Until March 1, 2006 for 35% at 113
Settlement date:	Feb. 25, 2003 (T+4)
Ratings:	Moody's: Caa1
	Standard & Poor's: B-

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