Ameristar Casinos obtains consents for waivers to 7½% notes due 2021

By Susanna Moon

Chicago, April 2 - Ameristar Casinos, Inc. said it received the needed consents in the solicitation for waivers and amendments to its $1.04 billion outstanding principal amount of 7½% senior notes due 2021.

The consent solicitation ended at 5 p.m. ET on April 2. It had been extended from March 27 and, before that, from March 22.

On March 25, the company also increased the consent fee to $19.00 for each $1,000 principal amount, from $10.00 per $1,000 of notes, half payable right after the offer ends and the remainder payable after the merger goes through.

The amended terms of the consent solicitation also reduced the capacity of Pinnacle, as the successor to Ameristar, to make restricted payments under the note indenture, according to a previous press release.

As noted before, the solicitation was in connection with the proposed acquisition of Ameristar by Pinnacle Entertainment, Inc. The solicitation began on March 18.

The company wanted noteholders to waive their right to a repurchase offer triggered by the change of control due to the planned merger and waive compliance with most covenants that would be violated as a result of the merger, according to a previous 8-K filing with the Securities and Exchange Commission.

Ameristar was soliciting the consents at the request and expense of Pinnacle under their merger plan.

The issuer is a Las Vegas-based gaming and entertainment company.

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