Station Casinos gets tenders of 95.2% of 9 7/8% notes

New York, Feb. 23 - Station Casinos Inc. said that it had received tenders and related consents from the holders of $356.913 million or 95.2% of its 9 7/8% senior subordinated notes due 2010 under its previously announced tender offer for the notes and related solicitation of consents to proposed indenture changes.

The consent solicitation expired as scheduled at 5 p.m. ET on Feb. 20, without extension. Holders who tendered by the consent deadline will receive payment on the initial settlement date, which is expected to be Feb. 26. The tender offer continues, with expiration scheduled for March 5; holders tendering after the consent deadline will receive payment following the offer expiration.

Notes tendered prior to the consent date may no longer be withdrawn.

With the company having received tenders from the holders of more than 95% of the notes, it has the consents needed to adopt the proposed indenture amendments, which needed the consent of holders of at least a majority of the outstanding notes.

As previously announced, Station Casinos, a Las Vegas-based casino gaming operator, said on Feb. 6 that it had begun a cash tender offer and consent solicitation for any and all of its $375 million of outstanding 9 7/8% notes.

It set 5 p.m. ET on Feb. 20 as the now-expired consent deadline and midnight ET on March 5 as the expiration deadline, subject to possible extension.

The company initially said that it would pay total consideration of $1,133.47 per $1,000 principal amount of notes tendered by the consent deadline, including a $30 per $1,000 principal amount, but said on Feb. 18 that it was increasing that to $1,137.50 per $1,000 principal amount. It initially said that it would pay $1,103.47 per $1,000 principal amount, which does not include a consent payment, for notes tendered after the consent deadline but before the expiration date. Station said on Feb. 18 that it was also increasing that amount to $1,107.50 per $1,000 principal amount. In both cases, holders will receive accrued interest up to but not including the date of payment.

The company said that tendering holders would be required to consent to proposed amendments to the note indenture that would eliminate substantially all of the restrictive covenants. It said that consents could not be given without tendering.

It said the tender offer would be is subject to conditions, including the now-fulfilled requirement of receipt of tenders for a majority of the principal amount of the notes, as well as Station Casinos being able to obtain senior subordinated financing on terms acceptable to the company. High yield syndicate sources said that an offering of at least $350 million of new notes is expected to price, perhaps as early as Tuesday.

After increasing the tender offer and total consideration on Feb. 18, Station Casinos said all other terms of the offer were unchanged, and that holders who had already tendered would not have to re-tender.

Banc of America Securities LLC (call High Yield Special Products at 888 292-0070 or collect at 704 388-4813) is the dealer manager and solicitation agent. D.F. King & Co. Inc. (800 628-8532 or collect at 212 269- 5550) is the information agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.