New Issue: Boyd Gaming prices $500 million 9 1/8% eight-year notes at par

By Paul A. Harris

St. Louis, Oct. 28 - Boyd Gaming Corp. priced a $500 million issue of eight-year senior notes (Caa1/B/) at par to yield 9 1/8% on Thursday, according to market sources.

The yield printed in the middle of the 9% to 9¼% price talk.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities, Deutsche Bank Securities Inc., RBS Securities Inc., Commerz Securities and Barclays Capital Inc. were the joint bookrunners for the quick-to-market issue.

The Las Vegas-based gaming company will use the proceeds to fund the tender for its 7¾% senior subordinated notes due 2012, to pay down its revolver, to refinance other debt and for general corporate purposes.

Issuer:	Boyd Gaming Corp.
Amount:	$500 million
Maturity:	Dec. 1, 2018
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Bank of America Merrill Lynch, Wells Fargo Securities, Deutsche Bank Securities Inc., RBS Securities Inc., Commerz Securities, Barclays Capital Inc.
Coupon:	9 1/8%
Price:	Par
Yield:	9 1/8%
Spread:	690 bps
Call protection:	Make-whole call at Treasuries plus 50 bps for first four years, then callable at a premium
Equity clawback:	35% at 109.125 until Dec. 1, 2013
Trade date:	Oct. 28
Settlement date:	Nov. 10
Ratings:	Moody's: Caa1
	Standard & Poor's: B
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	9% to 9¼%
Marketing:	Quick to market

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