By Angela McDaniels
Tacoma, Wash., Jan. 6 - Station Casinos LLC issued $625 million principal amount of senior notes due 2018 in exchange for an equal amount of tranche B-3 loans outstanding under its $1.6 billion credit facility, according to an 8-K filing with the Securities and Exchange Commission.
The initial interest rate on the notes is 3.65%. It will step up to 3.66% on June 16, 3.67% on June 16, 2013, 4.87% on June 16, 2014, 7.22% on June 16, 2016 and 9.54% on June 16, 2017.
On June 17, 2016 and June 19, 2017, the company is required to pay a duration fee equal to 1% of the then-outstanding amount of the notes.
The notes are callable at par beginning Dec. 31, 2012.
The company must offer to repurchase the notes at par if a change-of-control event occurs or if it sells assets and does not use the proceeds for specified purposes.
The indenture contains covenants that, among other things, limit the company's ability to incur additional debt, make distributions on its equity, repurchase equity and sell certain assets or merge with other companies.
The exchange was made on Tuesday.
Station Casinos is a Las Vegas-based casino company. It emerged from Chapter 11 bankruptcy on June 20, 2011.
| Issuer: | Station Casinos, LLC
|
| Issue: | Senior notes
|
| Amount: | $625 million
|
| Maturity: | June 18, 2018
|
| Coupon: | Initially 3.65%; steps up to 3.66% on June 16, 3.67% on June 16, 2013, 4.87% on June 16, 2014, 7.22% on June 16, 2016 and 9.54% on June 16, 2017
|
| Call option: | At par beginning Dec. 31, 2012
|
| Settlement date: | Jan. 3
|
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