San Pasqual Casino again prolongs consent solicitation for 8% notes, ups payment

By Jennifer Chiou

New York, Aug. 1 - San Pasqual Casino Development Group, Inc. said it once more extended the consent solicitation for its 8% senior notes due 2013, this time to 5 p.m. ET on Aug. 7.

Earlier on Friday, the deadline had been extended to Aug. 4.

Previously, the expiration was extended from Aug. 1 and before that July 24, July 22, July 18, July 11 and June 27.

The company is now offering a consent fee of $35.00, up from $5.00, for each $1,000 principal amount of notes.

The company is seeking consents to permit a distribution to its parent, the San Pasqual Band of Mission Indians, and to eliminate the effect of a termination payment on some covenants in the indenture related to the notes.

San Pasqual Casino also said it proposes to make certain additional changes to the indenture, which involve, among other things, placing further limitations on its ability to incur debt, including by reducing the secured debt basket to $20 million from $50 million.

The San Pasqual Band has entered into an agreement with Sealaska Properties, LLC to terminate its remaining future obligations to Sealaska, including its obligation to pay Sealaska a percentage of the gaming revenues of its casino, in exchange for a termination payment. For the 12 months ended March 31, payments to Sealaska were about $4.2 million.

Merrill Lynch & Co. (888 654-8637 or 212 449-4914) is the solicitation agent. Global Bondholder Services Corp. (212 430-3774 or 866 389-1500) is the information agent.

San Pasqual Casino is based in Valley Center, Calif., and manages the Valley View Casino.

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