Gaming Strategy
Featured Stories
Legal News Financial News Casino Opening and Remodeling News Gaming Industry Executives Search News Subscribe
Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter!
Related Links
Related News
Search Our Archive of Gaming Articles 

Foxwoods reaches accord on debt restructuring

3 August 2012

MASHANTUCKET, Connecticut -- (PRESS RELEASE) -- The Mashantucket Pequot Tribal Nation (MPTN), owner of Foxwoods Resort Casino®, today announced that it has reached an agreement with steering committees of its lenders and bondholders to restructure $2.2 billion of outstanding indebtedness. Over the next several months, MPTN and the steering committees will work toward building support for the agreement and implementing the restructuring.

“This represents a critical step forward for our business,” said Foxwoods CEO Scott C. Butera. “The comprehensive agreement substantially lowers our aggregate debt balance and extends maturities at favorable interest rates. It provides for a capital structure that will support significant investments in our gaming and hospitality businesses. This plan will once again put Foxwoods and MPTN on solid financial footing and allow us to continue to provide an outstanding entertainment environment for our guests."

Under the terms of the agreement, MPTN's senior secured credit facility and Kien Huat loans will be restructured into two term loans with five- and seven-year maturities, respectively. MPTN bondholders are to receive new securities with lengthened maturities of 13, 18 and 23 years based on the seniority of the existing bonds. Maturities will be set from the restructuring date.

Holders of MPTN's subordinated special revenue obligations and 8.5% notes will receive new debt at a discount to face value of accrued principal and interest. Bank of America and Wells Fargo will arrange a $30 million working capital facility for MPTN with a 30-month term beginning on the restructuring date.

"The MPTN fully supports the agreement worked out between the Tribe, Foxwoods management and the steering committees," said Mashantucket Pequot Tribal Council Chairman Rodney Butler. "It is fair and consensual, and implementation of the plan will help provide for the long-term financial stability of our Tribal community as well as enhance the competitive strength of Foxwoods Resort Casino. The Council is grateful to all of its Tribal Members, employees, vendors, patrons, and local community partners for their support during these challenging times."

The steering committees include Bank of America as administrative agent to MPTN’s senior secured credit facility plus representatives for other lenders and bondholders at each level of MPTN’s capital structure.

MPTN’s financial advisor for the restructuring is Miller Buckfire & Co.; and its legal counsel is Weil, Gotshal & Manges LLP.

< Gaming News