RLPC-Pittsburgh casino developer seeks $720 mln loan

NEW YORK, April 15 (Reuters) - Credit Suisse is launching a $720 million bank loan on Friday to back developer Don Barden's plans to construct a Majestic Star Casino in downtown Pittsburgh, sources told Reuters Loan Pricing Corp. on Tuesday.

The loan consists of a $100 million revolving bank line, a $370 million first-lien term loan and a $250 million second-lien term loan.

The first-lien piece is expected to be priced with a coupon rate of 600 basis points over the London interbank offered rate. It is being offered at a discount of 96 cents on the dollar and will have a Libor floor of 3.25 percent.

The first-lien loan is non-callable for 18 months and has hard call protection thereafter for two years at 102 and 101 cents on the dollar.

The second-lien term loan is expected to be priced at 96 cents on the dollar with a coupon of 1000 basis points over Libor, plus an additional 300 basis points on a pay-in-kind basis. Pay-in-kind gives the issuer the right to pay in additional debt rather than cash. It has a 3.25 percent Libor floor and is non-callable for two years and callable for three years thereafter at 106, 104 and 102 cents on the dollar.

PITG Gaming owner Don Barden also currently owns Fitzgeralds casinos in Las Vegas, Tunica County, Miss., and Black Hawk, Colo. He also is the owner of the Majestic Star riverboat casino in Gary, Ind. He also purchased the Trump Casino in Gary and renamed it Majestic Star Casino II.

The Pittsburg property will be built on the Ohio River shore between the Carnegie Science Center and West End Bridge.

(Reporting by Smita Madhur; editing by Dena Aubin)