Ameristar Casinos Note Sale Completed
Ameristar Casinos (ASCA: 26.50 +0.00%) announced today that the gaming company had completed sales of notes offered privately and due in 2014. The gambling operator collected $620 million in exchange for senior unsecured notes at 9 1/4 percent.
Of the notes, $500 million were sold at just over 97 percent of the principal. Another $150 million were sold at 100 percent of principal amount.
Cash generated was used to pay off existing rotating loans and debt commitments. As a private offering, the notes are not registered with the Securities and Exchange Commission.
Ameristar will also use funds for continuing operations of its eight regional casinos. Ameristar casinos are expecting an earnings bump as new gambling laws in Colorado and Missouri come into effect.