Aztar receives consents to amend 8 7/8% notes

New York, May 4 - Aztar Corp. said it received the necessary consents to amend the indenture for its 8 7/8% senior subordinated notes due 2007.

Aztar said it will execute a supplemental indenture after the close on May 5 but added that the amendments will not become effective until the notes are accepted for payment under the tender offer.

Aztar said on April 23 that it had begun a cash tender offer for any and all of its $235 million of outstanding 8 7/8% senior subordinated notes due 2007 and has also begun soliciting noteholder consents to proposed changes in the notes' indenture that would eliminate substantially all of the restrictive covenants and certain events-of-default provisions.

It set a consent deadline of 5 p.m. ET on May 5 and said the tender offer would expire at 5 p.m. ET May 20, with both deadlines subject to possible extension.

Aztar, a Phoenix-based gaming company with operations in Nevada, New Jersey, Missouri and Indiana, said that holders who validly tender their notes by the consent deadline will receive the total consideration of $1,033.33 per $1,000 principal amount of notes tendered and accepted for purchase. The amount includes a $30 per $1,000 principal amount consent purchase.

Holders who validly tender their notes after the consent date but before the expiration date will receive tender offer consideration for their notes of $1,003.33 per $1,000 principal amount but will not receive the consent payment.

All tendering holders will also be paid accrued and unpaid interest up to, but not including, the date of payment for the notes.

The company said that before the consent date, holders tendering their notes will be required to consent to the proposed amendments.

Aztar said the tender offer is conditioned upon its receipt of tenders of notes representing a majority of the outstanding principal amount of the notes and its receipt of financing on acceptable terms in an amount sufficient to complete the offer.

Banc of America Securities LLC will act as exclusive dealer manager and solicitation agent (call the High Yield Special Products department at 888 292-0070 or collect at 704 387-1949).

Global Bondholder Services is the information agent (call 866 470-3800 or collect at 212 430-3774).

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