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Gaming company refinances debt

Tuesday, March 9, 1999 | 10:24 a.m.

Coast Hotels & Casinos Inc. of Las Vegas said holders of 99 percent of its outstanding $175 million of 13 percent first-mortgage notes have consented to a tender offer that expires March 22.

Total consideration for each $1,000 principal amount of outstanding notes will include a consent payment of $20 and a fixed spread of 60 basis points over the yield to maturity on 4.625 percent U.S. Treasury Notes due Dec. 31 as of March 20.

The company, a subsidiary of privately held Coast Resorts Inc., is making the cash tender for the notes to reduce borrowing costs at a time of lower interest rates.

Though company officials, attorneys and underwriters declined to comment, the note solicitation removes certain restrictions to Coast's ability to finance a new resort planned for the northwest area of Las Vegas.

Coast Resorts owns The Orleans, the Gold Coast and the Barbary Coast and is expected to break ground on a new locals-oriented hotel-casino near the Summerlin Parkway and Rampart Boulevard within two months.

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