Sugarhouse talks $235 million five-year notes with 8¾% area yield

By Paul A. Harris

Portland, Ore., April 11 - Sugarhouse Casino talked its $235 million offering of five-year senior secured second-lien notes with a yield in the 8¾% area on Monday, according to an informed source.

The books close at noon ET on Tuesday.

Credit Suisse Securities and Goldman Sachs & Co. are the joint bookrunners for the Rule 144A and Regulation S for life offering.

The notes come with 2.5 years of call protection. However, a special call provision allows the issuer to call 10% of the notes annually at 103 during the non-call period.

The notes also feature a three-year 35% equity clawback and a 101% poison put.

Proceeds will be used to refinance bank debt and vendor financing and for general corporate purposes.

The issuing entities will be Sugarhouse HSP Gaming Prop. Mezz, LP and Sugarhouse HSP Gaming Finance Corp., special purpose vehicles of the Philadelphia-based casino, which is owned by HSP Gaming.

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