Station Casinos’ multistep coupon unsecured notes were placed with investors at 61.5 by bookrunners Deutsche Bank and J.P. Morgan, according to sources. Distribution of the bonds comes alongside the sell-down of the B-1 and B-2 term loans by the same bookrunners. The bonds and loans are the product of last year’s restructuring of the company’s propco debt, largely CMBS, that was restructured into a strip of loans upon exit from Chapter 11. The tranche B-3 term loan was converted in January into the notes issue. The initial interest rate is 3.65%, but steps on June 16 to 3.66%. The coupon thereafter steps to 3.67% on June 16, 2013; 4.87% on June 16, 2014; 7.22% on June 16, 2016; 9.54% on June 16, 2017. The company is also required to pay a duration fee equal to 1% of the then aggregate outstanding amount of the paper on each of June 17, 2016 and June 19, 2017. Terms:
| Issuer | Station Casinos | |
| Ratings | CCC+/Caa2 | |
| Amount | $625 million | |
| Issue | senior unsecured multistep notes | |
| Coupon | 3.65% (init) | |
| Price | 61.5 | |
| Yield | 14.942% | |
| Spread | T+1,371 | |
| FRN eq. | L+1,346 | |
| Maturity | June 18, 2018 | |
| Call | nc 10 mo | |
| Trade | Feb. 16, 2012 | |
| Settle | Feb. 22, 2012 | |
| Books | DB/JPM | |
| Jt Leads | ||
| Co’s. | ||
| Px talk | 65 area | |
| Notes | coupon steps: 3.66%; 3.67%; 4.87%; 7.22%; 9.54%; callable @ par after 12/31/2012; w/ change-of-control put @ par. |