Mohegan launches $225 million last-out term loan at Libor plus 750 bps

By Sara Rosenberg

New York, Jan. 27 - Mohegan Tribal Gaming Authority held a bank meeting on Friday to launch a $225 million last-out, first-loss term loan that is talked at Libor plus 750 basis points with a 1.5% Libor floor and an original issue discount of 98, according to a market source.

The loan is non-callable for two years, then at par, the source said.

Commitments are due on Feb. 2.

In addition, earlier in the week, the company launched a $200 million revolver due March 31, 2015 and a $275 million term loan A due March 31, 2015 to some investors.

Pricing on the revolver and term loan A is expected to range from Libor plus 350 bps to 450 bps, based on leverage, the company recently disclosed. The revolver unused fees will range from 25 bps to 50 bps.

Wells Fargo Securities LLC, Bank of America Merrill Lynch and Credit Suisse Securities (USA) LLC are the lead banks on the deal, with Wells Fargo the left lead on the last-out loan and Bank of America the left lead on the revolver and term loan A.

The new bank debt is being done in connection with the company's private par exchange offers supported by a bondholder group holding about $598 million principal amount of its notes. The financing would be used to refinance an existing credit facility.

Mohegan is an Uncasville, Conn., operator of gaming and entertainment enterprises.

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