Mohegan Tribal ends quarter with $64.7 million cash, $1.6 billion debt

By Lisa Kerner

Charlotte, N.C., May 5 - Mohegan Tribal Gaming Authority's fiscal second quarter can be described as the quarter "that could have been" but for the impact of horrible winter weather, Mitchell Etess, chief executive officer of Mohegan, said during the company's earnings call on Thursday.

Credit Suisse continues to focus on evaluating and implementing debt capital markets financing alternatives for Mohegan, and Blackstone Advisory Partners LP continues to help in strategic planning relating to debt maturities, according to Etess.

The company had cash and cash equivalents of $64.7 million at March 31, compared with $63.9 million at Sept. 30, 2010.

Mohegan had $493 million drawn on its $675 million bank credit facility and about $47 million of borrowing capacity available as of March 31.

Total debt, including capital leases, was about $1.60 billion at quarter-end, compared with $1.64 billion at Sept. 30, 2010, according to a company news release.

Mohegan, an Uncasville, Conn.-based casino operator, posted second-quarter adjusted EBITDA of $79.8 million on net revenues of $347.9 million. Adjusted EBITDA was up 4% from the second quarter of fiscal 2010, while net revenues declined by more than 1.2% compared to the prior-year period.

Disbursements to the tribe totaled $4.6 million, compared with $11.2 million for the second quarter of fiscal 2010.

Joint venture with Concord

Also on Thursday, Mohegan announced that it is partnering with Concord Associates to develop the Concord Resort, a gaming and racing resort facility located on 116 acres in the Town of Thompson, N.Y.

Concord Kiamesha Holdings, LLC, the proposed joint venture entity, has engaged Jefferies & Co., Inc. as its financial adviser on the project, according to a Mohegan news release.

Phase 1 of the project, budgeted at over $600 million and slated to open in the spring of 2013, includes a 75,000-square-foot casino, a 258-room resort hotel and a harness racing facility.

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