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Author: ytm One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35357  
Subject: ALERT: CEJV Bonds Redemption 3-1-2012 Date: 2/14/2012 12:33 PM
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Might be a little arb play here. Am I reading this correctly, that they have some cash and just got a new offering that is going to take out the current float that redeems in 2 weeks? IF this is the case, the bonds are trading at an 8% discount par right now. Someone just grabbed $50000 face on the ask.

CEJV announced a new $120MM offering that will be used to payoff the upcoming March 1st float. S&P cut them, but that is not my concern if in fact the new offering is a new float, unlike the River Rock where they replaced the excisting bond float with a brand new bond float.

http://www.reuters.com/article/2012/02/06/idUSWNA95522012020...
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Author: blacktreechaser Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33666 of 35357
Subject: Re: ALERT: CEJV Bonds Redemption 3-1-2012 Date: 2/14/2012 10:18 PM
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See if it happens or not. The main casino area of Reno, where Silver Legacy is, just looks shoddier and shoddier to me every time I pass through. Three higher-end casinos seem to get most of the over-night traffic now...Peppermill, Atlantis, and Grand Sierra...and they are not within walking distance of the Silver Legacy...in other words, the folks staying at those three are going to eat and gamble at those three.

Last time through, I saw two relatively large casinos near the Silver Legacy were boarded up.

I know I would not buy the new offerring (if it goes through).

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Author: blacktreechaser Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33667 of 35357
Subject: Re: ALERT: CEJV Bonds Redemption 3-1-2012 Date: 2/14/2012 10:25 PM
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17274RAB9

Above is the CUSIP if anyone want to roll the dice. I see it traded at 97 on Monday, last trade was 86.

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Author: ytm One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33668 of 35357
Subject: Re: ALERT: CEJV Bonds Redemption 3-1-2012 Date: 2/15/2012 9:16 AM
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I concur with you. I absolutely have no interest in buying the new issue whatsoever. And thanks for your insights on that area in Reno.

I am trying to definitively find this out; but basically are the proceeds from the new issue going to be utilized to pay off and get rid of the current float or is the new issue going to merely swapped out for the bonds, meaning the current existing bond holders will be getting more bonds.

That article made it sound like the first scenario above. But if that was the case, and everything was lined up, why were the bonds available yesterday when I scanned them for 5% under par with only 2 weeks til redemption? Hopefully I can definitively get an answer today.

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Author: blacktreechaser Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33669 of 35357
Subject: Re: ALERT: CEJV Bonds Redemption 3-1-2012 Date: 2/15/2012 7:24 PM
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why are they bonds due next month trading at a discount??

Well, as I read it, with my pea brain interpertation, I understand that the new issue is not a done deal yet...Close, but no one has signed on the dotted line yet for the new bond issue.

But, maybe I didn't understand it correctly.

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Author: ytm One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33671 of 35357
Subject: Re: ALERT: CEJV Bonds Redemption 3-1-2012 Date: 2/16/2012 7:33 AM
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Great point. I read it so quickly I may have been biased.

As of February 6th, its an offering that was proposed. The planned on using the proceeds along with some spare cash to pay off bond holders redeeming 3/1/12.

What is interesting is the price action yesterday. The notes took a dive since my initial post when I quoted them at $95ish handle. Now 10% lower than that.

I think I will probably stay away from this one now. Bond traders are the most proficient on the planet, so to just jump in here at a 14% discount with the intent of getting par, you are right, you are really rolling the dice.

-------------------
****************BREAKING NEWS**********************

Proposal TERMINATED. Downgraded from Caa3 to Ca. This explains the price action yesterday.

http://www.moodys.com/research/Moodys-downgrades-Circus-and-...

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Author: blacktreechaser Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 33672 of 35357
Subject: Re: ALERT: CEJV Bonds Redemption 3-1-2012 Date: 2/16/2012 8:21 AM
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Wow, so the new offerring did get cancelled. I would hate to think the whole offerring was just a sham to begin with, to give institutional bond holders of the 3/2012's a chance to dump them before the upcoming likely default.

On another note, I did notice a lot of trades yesterday for this issue in quantities of just one bond. I'd wager at least some of those were by readers of this board, either buying or selling based on the last few posts.

Maybe the bonds will eventually pay off...who knows.

For anyone interested, these bonds are for just one property, the Silver Legacy Casino in downtown Reno. It opened up around 1993-94, I think, with a lot of fanfare. It was considered classy. There was a uniformed bell hop at the elevators that would not let your party have access unless someone could show a room key.
You can go in there any day or night and see a lot of people there. There are still near by attractions that will draw in lodgers...like the large bowling area complex, and U. of Nevad-Reno.

But the three much higher-end casinos which are away from downtown Reno have pulled away the more affluent spenders, that will be playing the $5.00 slots and eating at the penthouse restauraunts, instead of the 5 cent slots and eating at the buffet.

Now I'm just going from my observations. I have no idea what that property might actually be worth. Please talk to someone else or do your own research. These bonds might be a raving bargin....or not. It seems from the news that a default on March 1 is highly likely. I have no idea what they might be worth when the dust settles. But I am not buying.

But speaking of Reno, I'm going to Hot August Nights this year. It's an unbelievable collection of old classic cars parading up and down the street every night, a few free concerts in Sparks by some old Motown singers, some hi priced concerts by others, usually the Beach Boys and Four Tops, and lots of free music outside by groups you never heard of playing oldies. I highly reccommend if you have never been. And if you have enough money and want a Model A or an old T-Bird, there is a large auto auction. It used to be in just downtown Reno and Sparks, but got too big, so they now have 5 or 6 venues..Reno, Sparks, and the three hi end casinos..to me, that broke it up too much. But its still a great event.

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