Foxwoods owner reaches agreement to restructure $2.2 billion of debt

By Caroline Salls

Pittsburgh, Aug. 2 - The Mashantucket Pequot Tribal Nation, owner of Foxwoods Resort Casino, has reached an agreement with the steering committees of its lenders and bondholders to restructure $2.2 billion of outstanding debt, according to a news release.

The tribe said it and the steering committees will work over the next several months toward building support for the agreement and implementing the restructuring.

"The comprehensive agreement substantially lowers our aggregate debt balance and extends maturities at favorable interest rates," Foxwoods chief executive officer Scott C. Butera said in the release.

"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," he added.

Restructuring terms

Under the terms of the agreement:

• Mashantucket's senior secured credit facility and Kien Huat loans will be restructured into two term loans with five-year and seven-year maturities, respectively;

• Mashantucket 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 Mashantucket's subordinated special revenue obligations and 8½% notes will receive new debt at a discount to face value of accrued principal and interest; and

• Bank of America and Wells Fargo will arrange a $30 million working capital facility for Mashantucket with a 30-month term beginning on the restructuring date.

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

The tribe's financial adviser for the restructuring is Miller Buckfire & Co., and its legal counsel is Weil, Gotshal & Manges LLP.

The Mashantucket Pequot Tribal Nation owns and operates the Foxwoods gaming facilities in Connecticut.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.