By Paul Deckelman
New York, June 1 - Station Casinos Inc. priced a quickly shopped $200 million offering of new senior subordinated notes Wednesday as an add-on to its existing issue of 6 7/8% notes due March 1, 2016.
The bonds priced at 102.25 for a yield to worst of 6.455%.
The deal came at the cheap end of price talk which anticipated a possible range of 102.25 to 102.5.
Bookrunners Banc of America Securities and Deutsche Bank Securities, plus co-managers Wells Fargo Capital, Lehman Brothers, Wachovia Securities, JP Morgan and Merrill Lynch brought the deal to market, high-yield syndicate sources said.
The Rule 144A/Regulation S notes were sold with registration rights.
They will not become callable until March 1, 2009, the same as the existing notes.
The new deal was not formally announced beforehand. Word that Station was bringing the add-on offering percolated through the market around mid-afternoon ET and it priced several hours afterward.
Station - a Las Vegas-based operator of casinos located away from the famous Las Vegas Strip and catering primarily to local gamblers rather than high rollers from out of town and other tourists - sold the original $350 million of 6 7/8% notes in February 2004. It plans to use the proceeds from the add-on issue to repay bank debt and for general corporate purposes, the market sources said.
The bonds carry ratings in line with the existing 6 7/8% issue - B1 from Moody's Investors Service, and B+ from Standard & Poor's.
| Issuer Name: | Station Casinos Inc.
|
| Amount: | $200 million
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| Security description: | Add-on senior subordinated notes
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| Maturity: | March 1, 2016
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| Bookrunners: | Banc of America Securities, Deutsche Bank Securities
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| Co-managers: | Wells Fargo Capital, Lehman Brothers, Wachovia Securities, JP Morgan, Merrill Lynch
|
| Coupon: | 6 7/8%
|
| Price: | 102.25
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| Yield to worst: | 6.455%
|
| Spread: | 274 basis points
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| Price talk: | 102.25 to 102.5
|
| Call schedule: | Callable after March 1, 2009 at 102.578, then 101.719, 100.859, and par on March 1, 2012 and thereafter.
|
| Distribution: | Rule 144A/Regulation S
|
| Settlement: | June 15 (T+10), with accrued interest
|
| Ratings: | Moody's: B1
|
| S&P: B+ |
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