Yonkers Racing marks needed consents for 11 3/8% notes due 2016

By Jennifer Chiou

New York, April 28 - Yonkers Racing Corp. said it obtained the required consents for its 11 3/8% senior secured notes due 2016 and has subsequently executed a supplemental indenture,

The solicitation expired at 5 p.m. ET on April 28. It began on April 20, and the company obtained consents in excess of 72% of the outstanding amount of notes.

As previously reported, Yonkers increased the consent fee to $12.50 for each $1,000 principal amount of notes, up from $10.00 per $1,000 of notes, after discussions with some noteholders.

In addition, Yonkers eliminated its right to redeem up to $22.5 million principal amount of the notes at 103 in each 12-month period ending on July 14, 2012 and July 14, 2013.

The company previously exercised that right for the 12-month period ending July 14, 2011.

Yonkers already said it believes that the elimination of the right is a benefit to noteholders, adding that this change could be effected without the consent of any holder.

As previously noted, the proposed amendments permit the company to issue up to an additional $100 million of the notes and use a portion of the proceeds to redeem all of its 13¼% senior subordinated notes due 2013, including accrued pay-in-kind interest and a premium, and repurchase all of its class A common stock warrants.

The changes also included the modification of an additional provision in the indenture that restricts Yonkers' ability to form and make investments with certain unrestricted subsidiaries.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch were the solicitation agents, and D.F. King & Co., Inc. was the tabulation agent (212 493-6996 for banks and brokers or 800 487-4870).

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

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