Station Casinos driving by with $750 million eight-year senior notes; initial talk 7% area

By Paul A. Harris

Portland, Ore., March 7 – Station Casinos LLC plans to price a $750 million offering of senior notes due 2032 (B3/B) in a Thursday drive-by trailing a late-morning conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the 7% area, sources say.

The deal launched into the market with $1.2 billion of reverse inquiry, according to a trader, who added that demand was heard to be three-times deal size on Thursday morning.

The Rule 144A and Regulation S eight-year notes become subject to an initial call after three years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101 poison put.

BofA Securities Inc. is the left bookrunner. Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC are joint bookrunners.

The Las Vegas-based gaming, development and management company plans to use the proceeds plus a draw on its revolver and a new term loan B to refinance all loans and commitments outstanding under its existing credit agreement, and for general corporate purposes.

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