Mohegan gets early approval to amend size of loan and accordion feature

By Sara Rosenberg

New York, Dec. 4 - The Mohegan Tribal Gaming Authority has received preliminary approval of an amendment that reduces the size of its credit facility to $850 million and the accordion feature to $150 million from $250 million, according to a news release.

The amendment also will modify the total leverage, senior leverage and minimum fixed-charge coverage ratio covenants.

In addition, the amendment will modify pricing.

Furthermore, the amendment will provide for a change in the use of proceeds to allow the repayment of the Authority's $330 million of 6 3/8% senior subordinated notes at maturity on July 15, 2009 with borrowings from the credit facility, decrease the permitted capital expenditures for Project Horizon to $350 million from $950 million, and limit certain investments and other capital expenditures.

Mohegan is an Uncasville, Conn.-based operator of the Mohegan Sun casino.

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