Business & Tech
Mohegan Tribal Gaming Authority Completes Financing Deal
The new structure allows for more flexibility
The Mohegan Tribal Gaming Authority, which owns and operates the Mohegan Sun and Pocono Downs in Wilkes-Barre, PA, has renegotiated its debt, with a $225 million term credit line, and restatement of its bank credit, totaling about $1 billion.
In addition to the credit line, the gaming authority renegotiated $961.8 million in debt, says the Hartford Courant.
According to Market Watch, roughly $10.8 million was paid to holders of old debt.
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The moves mean the due date for repayment have been extended to 2016 and 2018, as opposed to beginning in 2013.
Keith Foley, an analyst at Moody's Investors Service, said the activity does not reduce the authority's debt, but does add more time, giving the authority more flexibility.
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Meantime, other projects are languishing a bit.
In February, Palmer, MA, Town Council President Paul E. Burns pushed Mohegan Sun to find a partner, or investor, and get moving on its plan to build a resort casino in the town, according to MassLive.
He also has started to work to find other casino developers who might be interested in creating a proposal for other available sites in town, either to compete against Mohegan, or work with them.
In Sullivan County, NY, a project to rebuild the Concord is lagging, in large part because of issues two developers are having with each other.
"We are very pleased to announce the successful completion of our refinancing," said Bruce "Two Dogs" Bozsum, Chairman of the Authority's Management Board and Mohegan Tribal Council.
"This accomplishment reflects a tremendous team effort, and we would like to extend our thanks to everyone involved at both the Authority and the Tribal government. We believe that this transaction demonstrates and confirms to the financial community that market-based solutions to comprehensive debt refinancings in the Native American gaming space are achievable."
Moody's Investor Service downgraded Mohegan Sun's heavy debt last spring, citing increased competition and declining gambling revenues.
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