Spain’s Cirsa overhauls €1.56 billion three-part deal, increases talk, pricing expected Friday

By Paul A. Harris

Portland, Ore., June 22 – Cirsa Gaming Corp. SA overhauled its €1.56 billion equivalent three-part offering of senior secured notes (B2/expected B+), decreasing the tenor of all three tranches to 5.5 years from seven years, according to market sources.

Talk widened dramatically from initial guidance.

The euro-denominated floating-rate notes are talked at Euribor plus 600 to 625 basis points, up from earlier guidance of 525 bps.

The euro-denominated fixed-rate notes are talked at 6¾% to 7%, up from the 6% area.

The dollar-denominated fixed-rate notes are talked in the 9% area, up from the 8% area.

Tranche sizes remain to be determined.

All three tranches are expected to price at discounts.

There are also covenant changes bearing primarily upon how the company may disburse cash and incur additional debt.

Call protection for the fixed-rate notes is reduced to two years from three years. A special call provision that would have allowed the issuer to call 10% of the notes annually at 103 during the non-call period is removed.

The revised deal is expected to price on Friday, a London-based sellside source said.

Joint global coordinator and joint bookrunner Deutsche Bank will bill and deliver for the Rule 144A and Regulation S for life notes offering. Barclays and UBS are also joint global coordinators and joint bookrunners. BBVA, Credit Suisse and Jefferies are also joint bookrunners.

Proceeds will be used to help fund the buyout of the Madrid-based gaming company by Blackstone and to repay debt of Cirsa.

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