Isle of Capri Casinos high-yield bonds price at par to yield 5.875%; terms

Isle of Capri Casinos this afternoon completed an offering of senior notes via bookrunners Wells Fargo, Credit Suisse, and Deutsche Bank, according to sources. Terms came tight to talk and at the target size, and an early read from the gray market points to, if anything, merely a modest gain on the break, sources add. Note that it’s the fashionable deal structure of late, with the first call premium at par plus 75% coupon to balance the issuer-friendly short schedule. Proceeds will be used to pay down term debt. Terms:

Issuer Isle of Capri Casinos
Ratings B/B3
Amount $350 million
Issue senior notes (144A)
Coupon 5.875%
Price 100
Yield 5.875%
Spread T+444
FRN eq. L+428
Maturity March 15, 2021
Call nc3 @ par+75% coupon
Trade Feb. 28, 2013
Settle March 5, 2013 (t+3)
Co’s. USB, CapOne
Px talk 6% area
Notes first call par+75% coupon.

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