By Paul A. Harris
Portland, Ore., Feb. 17 - Station Casinos, LLC priced a $625 million issue of senior step-up coupon notes (Caa2/CCC+/) due June 18, 2018 at 61.5 to yield 14.942% late Thursday, according to market sources.
The reoffer price came well cheap to price talk in the 65 area.
The notes pay an initial coupon of 3.65%, with subsequent steps up which eventually move the coupon to 9.54% on June 16, 2017.
Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the joint bookrunners.
The Rule 144A with registration rights notes become callable at par on Dec. 31, 2012 and feature a poison put exercisable at par.
The notes are part of the financing related to the Las Vegas-based casino company's exit from Chapter 11 bankruptcy in June 2011.
| Issuer: | Station Casinos, LLC
|
| Amount: | $625 million
|
| Maturity: | June 18, 2018
|
| Securities: | Senior step-up notes
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Coupon: | 3.65%, steps on June 16 to 3.66%, to 3.67% on June 16, 2013; 4.87% on June 16, 2014; 7.22% on June 16, 2016; 9.54% on June 16, 2017
|
| Price: | 61.5
|
| Yield: | 14.942%
|
| Call: | Callable on Dec. 31, 2012 at par
|
| Change-of-control put: | Par
|
| Trade date: | Feb. 16
|
| Settlement date: | Feb. 22
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 65 area
|
| Marketing: | Roadshow
|
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