Published on 8/4/2010 in the Prospect News High Yield Daily.
New Issue: Borgata prices upsized $800 million secured notes in two tranches
By Paul A. Harris
St. Louis, Aug. 4 - Atlantic City's Borgata Hotel Casino & Spa, issuing via financing unit Marina District Finance Co., priced an upsized $800 million of senior secured notes in two parts (B2/BB/) on Wednesday, according to an informed source.
The company priced a $400 million tranche of 9½% notes due Oct. 15, 2015 at 98.943 to yield 9¾%.
The yield printed on top of the 9¾% area yield talk. The reoffer price came in line with discount talk of approximately 1 point.
Meanwhile, Borgata priced a $400 million tranche of 9 7/8% notes due Aug. 15, 2018 at 99.315 to yield 10%.
The yield on the 2018 notes printed at the tight end of yield talk that had them coming 25 basis points to 37.5 bps behind the 2015 notes. The reoffer price came slightly rich to discount talk of approximately 1 point.
Bank of America Merrill Lynch, Wells Fargo Securities, J.P. Morgan Securities Inc., Barclays Capital Inc., RBS Securities Inc. and UBS Investment Bank were the joint bookrunners for the issue, which was upsized from $725 million.
Proceeds will be used to repay bank debt and to fund a dividend.
| Issuer: | Marina District Finance Co., Inc. (Borgata Hotel Casino & Spa)
|
| Face amount: | $800 million, increased from $725 million
|
| Proceeds: | $793,032,000
|
| Securities: | Senior secured notes
|
| Bookrunners: | Bank of America Merrill Lynch, Wells Fargo Securities, J.P. Morgan Securities Inc., Barclays Capital Inc., RBS Securities Inc., UBS Investment Bank
|
| Co-managers: | Daiwa Securities America Inc., Capital One Southcoast, Inc.
|
| Trade date: | Aug. 4
|
| Settlement date: | Aug. 6
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A with registration rights
|
|
|
| Notes due 2015
|
| Face amount: | $400 million
|
| Proceeds: | $395,772,000
|
| Maturity: | Oct. 15, 2015
|
| Coupon: | 9½%
|
| Price: | 98.943
|
| Yield: | 9¾%
|
| Spread: | 815 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Oct. 15, 2013, then callable at 104.75, 102.375 until the day prior to maturity
|
| Special call: | 10% of the issue may be called annually at 103.0 during the non-call period
|
| Price talk: | 9¾% area with approximately 1 point OID
|
|
|
| Notes due 2018
|
| Face amount: | $400 million
|
| Proceeds: | $397.26 million
|
| Maturity: | Aug. 15, 2018
|
| Coupon: | 9 7/8%
|
| Price: | 99.315
|
| Yield: | 10%
|
| Spread: | 752 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2014, then callable at, 104.938, 102.469, par on and after Aug. 15, 2016
|
| Special call: | 10% of the issue may be called annually at 103.0 during the non-call period
|
| Price talk: | 25 bps to 37.5 bps behind the 2015 notes
|
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