By Paul A. Harris
Portland, Ore., Jan. 27 – Jacobs Entertainment, Inc. priced an upsized $350 million issue of seven-year second-lien senior secured notes (B2/B) at par to yield 7 7/8% on Friday, according to a syndicate source.
The issue size was increased from $340 million.
The yield printed at the tight end of yield talk in the 8% area.
Credit Suisse Securities (USA) LLC, Capital One Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The Golden, Colo.-based owner and operator of gaming properties plans to use the proceeds to retire its first- and second-lien term loans and to fund select acquisitions and development opportunities.
| Issuer: | Jacobs Entertainment, Inc.
|
| Amount: | $350 million, increased from $340 million
|
| Maturity: | Feb. 1, 2024
|
| Securities: | Senior secured second-lien notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Capital One Securities Inc., Wells Fargo Securities LLC
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 556 bps
|
| First call: | Feb. 1, 2020 at 105.906
|
| Equity clawback: | 35% at 107.875 until Feb. 1, 2020
|
| Trade date: | Feb. 27
|
| Settlement date: | Feb. 7
|
| Ratings: | Moody's: B2
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8% area
|
| Marketing: | Roadshow
|
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