Golden Nugget talks downsized $295 million eight-year notes to yield 8½%-8¾%

By Paul A. Harris

Portland, Ore., Nov. 4 - Golden Nugget, Inc. downsized its offering of eight-year senior notes (Caa1/CCC+) to $295 million from $300 million, an informed source said on Monday.

The notes are talked to yield 8½% to 8¾%.

Books close at 1 p.m. ET Tuesday, and the deal is set to price shortly thereafter.

Jefferies LLC and Deutsche Bank Securities Inc. are the joint bookrunners.

The notes will come with four years of call protection.

Proceeds will be used to refinance debt and fund the acquisition of the Golden Nugget Lake Charles.

The Lake Charles casino and hotel resort project, which is under construction, is being purchased from Pinnacle Entertainment Inc.

Other funds for the transaction will come from a credit facility which has been upsized to $600 million from $550 million, with the $50 million increase of the term loan B tranche to $350 million from $300 million. The term loan B was talked on Monday with a 450 basis points to 475 bps Libor spread at 99.

Golden Nugget is a hotel and casino operator. The company is being spun out of Landry's Inc.

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