MASHANTUCKET, Conn.--(BUSINESS WIRE)--The Mashantucket Pequot Tribal Nation (“MPTN”), owner of Foxwoods Resort Casino®, today announced that it has consummated its offers to exchange notes and closed on the restructuring of $2.3 billion in debt obligations.
The transactions, which represent the resolution of 100% of creditor claims, reduce MPTN’s debt outstanding by $550 million and extend maturities. In conjunction with the restructuring, Foxwoods received $25 million of new senior secured financing comprised of $5 million in revolving credit and a $20 million term loan.
“This is truly a milestone event for MPTN and Indian Country as a whole,” said Tribal Council Chairman Rodney Butler. “The new capital structure not only allows Foxwoods to move forward as a stronger competitor, it also renews the financial stability of our entire Tribal Nation.”
“The completion of our balance sheet restructuring is an historic occasion for Foxwoods and for the relationship between Wall Street and Native American gaming enterprises,” said Foxwoods CEO Scott C. Butera. “With our new capital structure in place, we have long-term financing at favorable rates. And along with the improvements we’ve made in our operations – from streamlining our cost structure to advancing our service and revamping our marketing – we are now in a strong position to build our gaming and hospitality business in the region.”
Under the terms of the agreement, MPTN's senior secured credit facility and Kien Huat loans were restructured into two term loans with five- and seven-year maturities. MPTN bondholders received new securities with lengthened maturities of 13, 18 and 23 years based on the seniority of the existing bonds. The new money revolver and term loan each have a maturity of 30 months.
”The Tribal Council expresses its profound gratitude to everyone involved in the four-year restructuring effort, in particular, our Tribal Members, employees, vendors, guests and local community partners for their dedication and support throughout this process,” said Chairman Butler. “We also want to thank our creditors and the team of bankers and advisors who helped to engineer these landmark agreements.”
Miller Buckfire & Co., LLC, a Stifel Company, served as financial and restructuring advisor to MPTN, and its legal counsel was Weil, Gotshal & Manges LLP.
About the Mashantucket Pequot Tribal Nation
The Mashantucket Pequots are a native Algonquin people in southeastern Connecticut who endured centuries of conflict and survive today on the oldest continuously occupied reservation in the U.S., dating to its establishment in 1666. As the first native people within the borders of the continental United States to suffer attempted genocidal massacre by Puritan Colonists in 1637, the Pequots and their repatriation is an unprecedented story of restoration exhibited in detail at MPTN’s world-class Museum and Research Center (www.pequotmuseum.org).
Disclaimer
This press release does not constitute an offer to sell or buy, or a solicitation of an offer to sell or buy, any security. No offer, solicitation, or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful.
Cautionary Statement Regarding Forward-Looking Information
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are statements that could be deemed forward-looking statements. These statements are based on current expectations, beliefs, estimates, forecasts, projections and management assumptions. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks and uncertainties that are difficult to predict. All forward-looking statements should be evaluated with an understanding of their inherent uncertainty. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date they were made. MPTN does not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date of this press release except as required by law. All forward-looking statements attributable to MPTN or persons acting on MPTN behalf are expressly qualified in their entirety by this cautionary statement.
