Aztar to Redeem $75 Million of 11% Senior Subordinated Notes Due October 1, 2002
PHOENIX, March 8 /PRNewswire/ -- Aztar Corporation (NYSE: AZR) today announced that it will redeem, on April 7, 1999, $75 million principal amount of its 11% Senior Subordinated Notes due October 1, 2002. The $75 million principal amount of notes being redeemed will be repaid at 101.571% of the face amount plus accrued interest.
The redemption will be paid with funds available through Aztar's Reducing Revolving Loan Agreement, under which the company now borrows at LIBOR plus 1.625%, resulting in a current interest rate that is less than 6.875%. After this redemption, $125 million principal amount of Aztar's 11% Senior Subordinated Notes due 2002 will remain outstanding, as will $180 million of 13-3/4% Senior Subordinated Notes due October 1, 2004 and callable on October 1, 1999. Aztar also announced that its bank lending group has agreed that the company may increase to $205 million the amount of subordinated indebtedness it may redeem with funds available through its revolving credit facility.
The actions reported today are the first steps in Aztar's previously announced program to seek to reduce interest expense and increase financial flexibility. The company continues to monitor capital markets and evaluate its alternatives with respect to the refinancing of its senior subordinated debt. |
