Yonkers Racing talks $225 million seven-year secured notes 11¾% area

By Paul A. Harris

St. Louis, July 10 - Yonkers Racing Corp. set price talk for its $225 million offering of seven-year senior secured notes (B1/B+) for a yield in the 11¾% area on Friday, according to an informed source.

Books close on Monday, with the notes expected to price thereafter.

Credit Suisse Securities and J.P. Morgan Securities Inc. are joint bookrunners for the Rule 144A for life offering.

The new notes will be non-callable for the first four years, although the company will have the option to redeem up to 10% of the notes at 103% of face value in each of those first four years.

There will be a change-of-control put at 101%.

Proceeds will be used to repay existing debt and to terminate an interest-rate swap arrangement.

The prospective issuer is a Yonkers, N.Y.-based horse racing and gaming company.

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