Cirsa Funding sweetens, extends exchange offers for 7 7/8%, 8¾% notes

By Angela McDaniels

Tacoma, Wash., Jan. 21 - Cirsa Gaming Corp. subsidiary Cirsa Funding Luxembourg SA extended and amended the private exchange offers for its €230 million of 7 7/8% senior notes due 2012 and €270 million of 8¾% senior notes due 2014, according to a company news release.

The offer was extended to midnight ET on Feb. 9 from 11 a.m. ET on Feb. 8

Previously, holders who tendered by the withdrawal deadline, 9 a.m. ET on Jan. 22, were slated to receive €1,000 principal amount of new senior secured notes due 2020 for each €1,000 principal amount of notes exchanged.

Now, holders who tender by 11 a.m. ET on Jan. 26 will receive €1,000 principal amount of the new notes plus a cash consent payment of €20 per note, and the coupon on the new notes was increased to 9½% from 9¼%.

The withdrawal deadline remains unchanged.

Holders who tender after 11 a.m. ET on Jan. 26 but before the offer expiration will receive €970 principal amount of the new notes for each €1,000 principal amount of notes exchanged.

In addition, the company increased the minimum ratio of consolidated EBITDA to fixed charges that it must satisfy before certain types of debt may be incurred under the limitation-on-debt covenant applicable to the new notes to 2.50 to 1 from 2.25 to 1.

The company is soliciting consents to amend the indentures governing the notes. Holders who exchange must provide consents.

The new notes will be guaranteed on a senior basis by Cirsa and some of its subsidiaries. They will be secured by a pledge of six-sevenths of the shares of Cirsa International Gaming Corp. SA and Cirsa Slot Corp. SL and a security assignment of the funding loan relating to the new notes from Cirsa Funding Luxembourg to Cirsa.

The company said the purpose of the exchange offers is to extend its debt maturities.

The exchange offers began Jan. 8 and are being made only in the United States to noteholders who are "qualified institutional buyers" under an exemption from the registration requirements of the Securities Act of 1933 and outside the United States to persons other than "U.S. persons" who are "non-U.S. qualified offerees."

The exchange offers are conditioned on the tender of at least a majority of the outstanding principal amount of each series of notes.

Lucid Issuer Services Ltd. (+44 20 7704 0880 or cirsa@lucid-is.com) is the exchange, tabulation and information agent.

Cirsa is a gaming company based in Terrassa, Spain.

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