Brief: Hilton spinoff starts debt buyback

Tuesday, Nov. 10, 1998 | 2:12 a.m.

The purchase price for each $1,000 principal amount of notes will be based on a formula tied to the yield on a U.S. Treasury note as of Nov. 30. Based on a recent yield, the price would be $1,090.11, including a $15 fee for allowing Park Place to amend some indentures to the notes, but excluding accrued and unpaid interest.

The tender offer, which expires Dec. 9, is part of the refinancing related to Grand's pending merger with a wholly owned subsidiary of Park Place. Park Place will acquire Grand's three Mississippi casinos, but not its Indian management contracts, which will be spun off into a separate company called Lakes Gaming.

The merger will follow a split of Hilton into separate lodging and gaming companies.

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