United Auburn Indian Community cuts revolver size to $950 million

By Sara Rosenberg

New York, July 2 - United Auburn Indian Community reduced the size of its in market revolving credit facility to $950 million from $1 billion, according to a market source.

Initial pricing on the revolver was left unchanged at Libor plus 225 basis points with an 87.5 bps unused fee.

Wells Fargo, Bank of America and Wachovia are the lead banks on the deal, with Wells Fargo the left lead.

Proceeds will be used to help fund the expansion of the Thunder Valley Casino in Lincoln, Calif.

Pricing can range from Libor plus 125 bps to 325 bps based on a leverage grid; however, during the construction phase, the spread will be pegged at the Libor plus 225 bps level.

The facility has a leverage covenant of 3.5 times, a fixed-charge coverage ratio and minimum EBITDAM requirement.

Based on projections, the company estimates that at peak leverage, it will be at 2.75 times.

The revolver is expected to close late in the week of July 7.

United Auburn Indian Community is comprised of both Miwok and Maidu Indians, and is located in the Sierra Nevada foothills near Auburn, Calif.

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