Mohegan Tribal ups term B to $730 million, cuts term A to $125 million

By Sara Rosenberg

New York, Nov. 4 - Mohegan Tribal Gaming Authority upsized its six-year term loan B to $730 million from $465 million and downsized its five-year term loan A to $125 million from $150 million, according to a market source.

Also, pricing on the term loan B firmed at Libor plus 450 basis points, the tight end of the Libor plus 450 bps to 475 bps talk, and the Libor floor was reduced to 1% from 1.25%, the source said.

The B loan still has an original issue discount of 99 and hard call protection of 102 in year one and 101 in year two.

The company's now $955 million credit facility, up from $715 million, also includes a $100 million five-year revolver.

Recommitments are due at 5 p.m. ET on Tuesday, the source added.

RBS Securities Inc., Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch, Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc., Credit Agricole and Jefferies Finance LLC are the joint lead arrangers on the deal.

Proceeds will be used to refinance existing debt, which will include, as a result of the term loan B upsizing, a tender for the company's second-lien notes.

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

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