Shingle Springs gets early tenders for $410.98 million 9 3/8% notes

By Susanna Moon

Chicago, Aug. 22 - Shingle Springs Tribal Gaming Authority said investors had tendered $410,984,000 of its 9 3/8% senior notes due 2015 by 5 p.m. ET on Aug. 21, the consent date.

The authority received tenders and consents from holders of about 91.3% of the notes by the consent date, which was enough to amend the notes, and the authority entered into a supplemental indenture, according to a news release.

The authority is soliciting consents to amend the notes to eliminate most of the restrictive covenants and some event-of-default provisions.

Holders may not tender their notes without delivering consents or deliver consents without tendering their notes.

Consents were needed from the holders of at least a majority of the outstanding principal amount of the notes in order to make the amendments.

As announced on Aug. 8, the total purchase price will be $1,005 per $1,000 principal amount of notes tendered by the consent deadline. The total payment includes a consent payment of $30.00 per $1,000 of notes.

The authority will also pay accrued interest up to but excluding the settlement date of Aug. 29 for early tendered notes.

The tender offer will run until 11:59 p.m. ET on Sept. 5. The offer began on Aug. 8.

Those who tender after the consent date will receive $975 per $1,000 of notes plus accrued interest up to but excluding the final settlement date, which is expected to be the business day after the offer ends.

Tendered notes may no longer be withdrawn, as of the consent deadline.

The tender offer is conditioned on completion of at least $490 million of financing. There is no minimum amount of notes that must be tendered in the tender offer, and the tender offer is not conditioned on the completion of the consent solicitation.

Shingle Springs priced $260 million of eight-year senior notes at par to yield 9¾% on Aug. 15, as was reported by Prospect News.

The dealer manager and solicitation agent is BofA Merrill Lynch (888 292-0070 or 980 388-3646). The tender and information agent is D.F. King & Co., Inc. (800 767-4414 or, for banks and brokers, 212 269-5550).

Shingle Springs is based in Placerville, Calif., and operates the Red Hawk Casino on the behalf of the Shingle Springs Band of Miwok Indians.

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