Hong Kong's Galaxy Entertainment completes discounted tender offers for floaters, 9 7/8% notes

By Jennifer Chiou

New York, Dec. 31 - Galaxy Entertainment Group Ltd. said its subsidiary, Galaxy Entertainment Finance Co. Ltd., wrapped its tender offers to purchase any and all of its $250 million of guaranteed senior floating-rate notes due 2010 and up to $100 million of its $350 million of 9 7/8% guaranteed senior notes due 2012.

The company said it received and accepted tenders from holders of $113.89 million of the floaters and $56.34 million of its 9 7/8% notes.

The company offered $530 for each $1,000 principal amount of the floating-rate notes.

The purchase price for the 9 7/8% notes was $450 per $1,000 principal amount and was determined through a modified Dutch auction.

The payouts include $30.00 for each $1,000 principal amount of notes tendered by the early tender date. All holders also received accrued interest up to but excluding the payment date, which is expected to be Jan. 2.

Galaxy said that the amount to be paid to tendering holders, including interest, will be $86.35 million.

The early tender date was 6 p.m. ET on Dec. 12, and the tender offers expired at midnight ET on Dec. 29. They began on Dec. 1.

The maximum amount Galaxy Entertainment will pay under the offers, excluding interest, is $180 million. The company said it will fund the offers with internal resources.

The purpose of the tender offers was to reduce outstanding debt and ongoing debt service obligations, according to the release.

Neither tender offer was conditioned on a minimum amount of notes being tendered.

Merrill Lynch & Co. was the dealer manager, and Bondholder Communications Group was the information and tender agent.

Galaxy Entertainment is based in Hong Kong and operates casinos, hotels and entertainment facilities in Macau through its subsidiary, Galaxy Casino SA.

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