Ameristar Casinos to launch $1.4 billion credit facility on Wednesday

By Sara Rosenberg

New York, March 29 - Ameristar Casinos Inc. is scheduled to hold a bank meeting at 2 p.m. ET on Wednesday at the Le Parker Meridien in New York to launch a proposed $1.4 billion credit facility, according to sources.

Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Bank of America Merrill Lynch and J.P. Morgan Securities LLC are the lead banks on the deal, with Deutsche the left lead.

The facility consists of a $200 million five-year term loan A, a $500 million five-year revolver and a $700 million seven-year term loan B, sources said.

Proceeds, along with $800 million of senior unsecured notes, will be used to retire $1.5 billion of existing debt, to fund a share repurchase and for general working capital.

Specifically, the company said that it will use reasonable best efforts to arrange the new debt facilities on satisfactory terms and conditions with sufficient borrowing capacity to enable it to retire existing senior credit facilities, retire or amend existing senior notes and fund the share buyback.

The company is buying 26.15 million shares of its common stock held by the Craig H. Neilsen Estate at a price of $17.50 per share, for a total price of roughly $457.6 million.

The shares to be repurchased represent about 45% of Ameristar's outstanding shares and 83% of the Neilsen Estate's current ownership in the company.

Closing is expected in the second quarter, subject to financing and customary conditions, including receipt of any necessary gaming and other regulatory approvals.

Ameristar is a Las Vegas-based gaming and entertainment company.

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