ST. LOUIS, Aug. 7, 2012 /PRNewswire/ -- Isle of Capri Casinos, Inc. (Nasdaq: ISLE) (the "Company") announced today the successful completion of its consent solicitation with respect to its outstanding 7% Senior Subordinated Notes due 2014 (the "2014 Notes").
On July 24, 2012, the Company commenced a cash tender offer (the "Tender Offer") for any and all of its outstanding 2014 Notes and a solicitation of consents to eliminate most of the restrictive covenants and events of default in the indenture governing the 2014 Notes (the "Consent Solicitation").
The Consent Solicitation expired at 5:00 p.m., New York City time, on August 6, 2012 (the "Consent Expiration Time"). As of the Consent Expiration Time, the Company had received tenders and consents representing $338,218,000 in aggregate principal amount of the outstanding 2014 Notes. The amount of consents received exceeded the consents needed to amend the indenture governing the 2014 Notes. Accordingly, on August 7, 2012, the Company accepted for purchase all such 2014 Notes validly tendered as of the Consent Expiration Time and the Company, the guarantors of the 2014 Notes and U.S. Bank National Association, as trustee, executed a supplemental indenture that eliminates most of the restrictive covenants and events of default in the related indenture.
The Company made a cash payment to the holders who validly tendered 2014 Notes on or prior to the Consent Expiration Time of $1,003 per $1,000 principal amount of 2014 Notes tendered, which includes a consent payment of $20 (the "Consent Payment") and the tender offer consideration of $983 (the "Tender Offer Consideration"). The Company funded this payment with a portion of the net proceeds of its previously announced private offering of $350 million 8.875% Senior Subordinated Notes due 2020, which also closed today.The Tender Offer is scheduled to expire at 12:01 a.m., New York City time, on August 21, 2012 (the "Expiration Time"). Holders who validly tender 2014 Notes after the Consent Expiration Time and prior to the Expiration Time, will be eligible to receive the Tender Offer Consideration, but not the Consent Payment, on the final settlement date, which will occur promptly following the Expiration Time and is expected to be August 22, 2012. If any 2014 Notes remain outstanding after the consummation of the Tender Offer, the Company expects to redeem such 2014 Notes in accordance with the terms and conditions set forth in the related indenture.