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Boyd completes $950M debt financing on Borgata

LAS VEGAS, Nev. — Boyd Gaming Corporation, which has operations in Mississippi, announced that Borgata Hotel Casino and Spa, Boyd Gaming’s 50/50 joint venture in Atlantic City, N.J., completed a $950-million debt financing, consisting of two $400-million tranches of senior secured notes due Oct. 2015 and Aug. 2018 and a $150-million payment priority secured revolving credit facility maturing in Aug. 2014, of which $75 million was drawn at closing.

Marina District Finance Company Inc. (MDFC), the issuer of the notes, is a wholly-owned subsidiary of Marina District Development Company, LLC (MDDC), the entity that developed and owns Borgata Hotel Casino and Spa, including The Water Club Hotel at Borgata.

The $400-million 2015 notes bear interest at a rate of 9 ½ percent per annum, payable semi-annually in arrears on April 15 and Oct. 15 of each year, commencing April 15, 2011. The $400-million 2018 notes bear interest at a rate of 9 7/8 percent per annum, payable semi-annually in arrears on Feb. 15 and Aug. 15 of each year, commencing Feb. 15, 2011. The notes are guaranteed by MDDC.

The proceeds from the debt financing will be used to retire Borgata’s existing bank credit facility, pay transaction fees and expenses and make a one-time distribution to Borgata’s joint venture partners estimated to be approximately $215 million, subject to adjustment based upon actual transaction fees and expenses, as well as the actual payoff of the outstanding balance under Borgata’s existing credit facility at closing.

Banc of America Securities LLC acted as representative for the initial purchasers.  Morrison & Foerster LLP represented Borgata in the offering, and Cahill Gordon & Reindel LLP represented the initial purchasers.

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