Wednesday, October 14, 2009

Mohegan Gaming Authority Seeks To Borrow $200 Million

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The Mohegan Tribal Gaming Authority issued a press release today about its intent to borrow $200 million to largely pay off existing debt. Under the title, "Mohegan Tribal Gaming Authority Announces Proposed Private Offering of $200 Million of Second Lien Senior Secured Notes Due 2017," MTGA provides the following information:

The Mohegan Tribal Gaming Authority, or the Authority, announced today that it intends to offer, subject to market and other conditions, $200 million aggregate principal amount of second lien senior secured notes due 2017, or the Notes, in a private offering to be conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, or the Securities Act. The Authority is the owner and operator of a gaming and entertainment complex located near Uncasville, Connecticut, known as Mohegan Sun, and a gaming and entertainment facility offering slot machines and harness racing in Plains Township, Pennsylvania, known as Mohegan Sun at Pocono Downs, or Pocono Downs.

The Authority intends to use the net proceeds from this offering to repay all of its existing term loans under its bank credit facility, of which $147 million in aggregate principal amount is outstanding, to repay $48 million of revolving loans under its bank credit facility, including a $25 million permanent reduction in the commitment, and to pay related transaction costs and expenses. The Notes will be collateralized by a second lien on substantially all of the Authority's property and assets, and that of its existing and future guarantor subsidiaries, or the Guarantors, and will be fully guaranteed, jointly and severally, on a second lien senior secured basis, by the Guarantors.

The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Notes.