A $561 million unrated bond deal for an upstate New York on line casino that was delayed to offer buyers time to herald purchaser’s counsel is now set to cost subsequent week with new bondholder-friendly phrases.
After delaying the
KeyBanc Capital Markets is the underwriter. The pricing is ready for Thursday, Sept. 11, the agency stated.
“Given the excessive visibility of the providing supplies and the investor engagement and suggestions now we have acquired on the roadshow, we expect lots of curiosity within the providing subsequent week,” stated Geoff Urbina, managing director, KeyBanc Capital Markets Public Finance in an e mail.
The Aug. 13 providing paperwork have been twice “stickered” with a whole bunch of pages of updates, together with a Sept. 2 second complement that outlines the modifications required by the investor’s authorized staff.
“Norton Rose Fulbright proposed numerous modifications to make clear the possible bondholders’ collateral and strengthen their treatments,” the second complement, dated Sept. 2, stated, including that “considerably all of the modifications” have been made.
“Potential purchasers of the [bonds] additionally offered sure suggestions and requests, lots of that are mirrored on this second complement, together with however not restricted to amortization of the [bonds].”
Norton Rose Fulbright didn’t reply to requests for remark by press time.
The
Excessive-yield munis underperformed in August, seeing positive aspects of 0.53% for the months however general stay within the pink for the yr at -1.31% by means of month finish. Inflows for August topped $2 billion, however most of that got here from an asset allocation shift right into a single HY ETF.
The bonds will probably be issued by means of the Sullivan County Resort Services Native Growth Company. Proceeds will fund the acquisition of the non-gambling companies at Genting Group’s Resorts World Catskills in Sullivan County, New York. The property, 90 miles from Manhattan, features a pair of resorts, a golf course, spa, a number of eating places and occasion area.
The debt is backed by non-gaming revenues from the property, together with resort charges and golf-course charges. The ultimate maturity is 2040.
Harris Seashore Murtha Cullina PLLC is bond counsel. Greenberg Traurig LLP is underwriter’s counsel. Munistat Companies, Inc. is the issuer’s monetary advisor.
Jessica Lerner contributed to this report.
