The Mohegan Tribal Gaming Authority has confirmed the problem of $1.2 billion in new secured notes as a part of a wider technique of refinancing.
The transfer is aimed to offer stability amid ongoing challenges from upcoming debt maturities in addition to to enhance liquidity. A non-public word trade and a contemporary credit score settlement are stipulations to the deal going by way of, with the funds positioned in escrow.
The refinancing replace comes after Mohegan skilled monetary stress linked to the tribe’s South Korean enterprise.
In February this yr, Bain Capital assumed operational management of the Encourage Leisure Resort in Incheon, citing missed monetary covenant thresholds.
Mohegan is contesting sure facets of the takeover, whereas negotiations stay ongoing.
.@CBRE Funding Banking acted as monetary advisor to Mohegan Tribal Gaming Authority in connection to the issuance of the $1.2 billion two-part refinancing of 1Lien/2Lien senior secured notes. pic.twitter.com/XfTQ00xJo6
— CBRE Capital Markets (@cbrecapitalmkts) March 31, 2025
Phrases of the transaction
The tribal operator had beforehand intimated that refinancing could be required to satisfy operational wants in addition to debt obligations, so the replace shouldn’t be surprising.
Its Q1 2025 monetary briefing indicated liquidity issues with out the emergence of contemporary capital, so the financing is well timed and satisfactory for the present state of affairs.
Yesterday (April 10), Mohegan Escrow Issuer – a totally owned subsidiary of the dad or mum firm – concluded a non-public providing of $750m in 8.25% of first precedence senior secured notes due in 2030 with an extra $450m in 11.875% second precedence senior secured notes due in 2031.
The transaction’s phrases state the discharge of escrowed funds is conditional upon the completion of a non-public trade between Mohegan and its co-issuer, MS Digital Leisure Holdings, to trade $226m in 13.25% senior unsecured notes due in 2027 in return for $250m of the newly issued 2031 notes.
One other situation is the setup of a brand new five-year, $250m senior secured revolving credit score facility with completely different banks in a syndicate association.
The brand new notes will likely be topic to redemption on 10 Could, if the escrow situations will not be met by that date.
Picture credit score: Grok/X
