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Mohegan amendment changes pricing to Libor plus 350 bps
By Sara Rosenberg
New York, Dec. 15 - The Mohegan Tribal Gaming Authority's recently completed amendment revised pricing on its credit facility to Libor plus 350 basis points, according to an 8-K filed with the Securities and Exchange Commission.
Over time, pricing on the facility gradually steps up until it tops out at Libor plus 450 bps at April 1, 2010.
However, pricing will change again to a range of Libor plus 200 bps to 350 bps after the company's term loans are paid in full, with the grid based on leverage.
As was previously reported, the amendment also reduced the size of the credit facility to $850 million and the accordion feature to $150 million from $250 million, and modified the total leverage, senior leverage and minimum fixed-charge coverage ratio covenants.
Furthermore, the amendment provided for a change in the use of proceeds to allow the repayment of the company'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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