Majestic Star offers to swap out 12½%/14½% notes for new term loan

By Susanna Moon

Chicago, May 1 – The Majestic Star Casino, LLC said it is offering to exchange its $111,105,171 of outstanding 12½%/14½% second-lien senior secured notes due 2016.

The company is giving these noteholders an opportunity to become lenders in a new 12½%/14½% first-lien secured term loan, according to a company notice.

Under the offer, each noteholder may commit to become a lender in the new term loan in exchange for tendered notes and consents for amendments to the indenture and the intercreditor and lien subordination agreement for the notes.

The offer will end at 11:59 p.m. ET on May 28, with closing slated for May 29.

Holders who commit to the new term loan must tender $1,000 principal amount of notes to fund each $1,000 principal amount of commitment to the new term loan by 5 p.m. ET on May 13, the early commitment date.

Commitments will not be accepted for amounts less than $2,000 and in whole multiples of $1 after that.

Noteholders who make commitments must consent to amendments that would eliminate most of the restrictive covenants and events of default contained in the indenture, release all of the liens on the collateral securing the notes and increase the amount of permitted obligations, the company said.

Commitments made before the early deadline may be rescinded.

The company also will pay accrued interest up to but excluding the settlement date.

The offer is conditioned on obtaining participation by holders of at least 95% of the outstanding notes, the receipt of the required consents to approve the proposed amendments from holders of least 95% of the outstanding notes, the execution and delivery of the supplemental indenture and amendment to the intercreditor agreement and the receipt of approvals from gaming regulatory authorities in Indiana and Mississippi.

Epiq Systems (646 282-2500 or 866 734-9393, solicitation group, or tabulation@epiqsystems.com) is the information agent and delivery agent.

The company said on July 7 that it was mulling alternative debt structures to refinance its first-lien senior secured credit facility due Dec. 1, 2014 and second-lien secured notes due Dec. 1, 2016.

Majestic is a multi-jurisdictional gaming company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.