{"id":19401,"date":"2020-12-17T16:10:39","date_gmt":"2020-12-17T14:10:39","guid":{"rendered":"https:\/\/bestinsurance.gr\/a1\/?p=19401"},"modified":"2020-12-17T16:10:39","modified_gmt":"2020-12-17T14:10:39","slug":"mohegan-pulls-100-million-leveraged-loan-sale-for-casinos","status":"publish","type":"post","link":"https:\/\/bestinsurance.gr\/a1\/archives\/19401","title":{"rendered":"Mohegan Pulls $100 Million Leveraged Loan Sale for Casinos"},"content":{"rendered":"<ul>\n<li><span style=\"color: #000000;\"><strong>Some casinos have reopened since the deal was launched in May<\/strong><\/span><\/li>\n<li><span style=\"color: #000000;\"><strong>Investors pushed back on loan that offered more than 14% yield<\/strong><\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span style=\"color: #000000;\">(Bloomberg) &#8212; Mohegan Gaming &amp; Entertainment\u00a0has pulled a $100 million leveraged loan sale that was intended to refinance debt and keep its casinos afloat during the pandemic.<\/span><\/h3>\n<section>\n<h3><span style=\"color: #000000;\">The company had offered to pay a yield of over 14% for the new\u00a0loan\u00a0maturing in October 2021. The borrower is an extension of the Mohegan tribe in Connecticut and operates the Mohegan Sun in that state as well as\u00a0other casinos\u00a0in North America.<\/span><\/h3>\n<h3><span style=\"color: #000000;\">\u201cIt was pulled because we were able to open earlier than anticipated and have enjoyed very strong operational results,\u201d a spokesperson for the company said in an emailed statement.<\/span><\/h3>\n<h3><span style=\"color: #000000;\">A representative for Credit Suisse Group AG, which was leading the loan offering, declined to comment.<\/span><\/h3>\n<h3><span style=\"color: #000000;\">The casino business in the U.S. has largely ground to a halt amid the Covid-19 pandemic. But several of Mohegan\u2019s managed properties, including Mohegan Sun in Connecticut and Paragon Casino Resort, recently\u00a0reopened.<\/span><\/h3>\n<h3><span style=\"color: #000000;\">Gaming revenues for the Mohegan Sun from June 1 through to June 14 increased about 10% compared to the same period in the prior year, according to a June 18\u00a0filing. Income from operations over the same period since reopening increased about 15% compared to the same time in 2019.<\/span><\/h3>\n<h3><span style=\"color: #000000;\">Proceeds from the new loan, along with $42 million of cash on the company\u2019s balance sheet, were intended to repay $138 million outstanding on a $250 million revolving credit facility due October 2021, according to a May 12\u00a0reportfrom Moody\u2019s Investors Service. The firm assigned a rating that was seven notches below investment-grade on the debt.<\/span><\/h3>\n<h3><em><strong><span style=\"color: #000000;\">Marketing for the loan began in May, but some investors pushed back on the company\u2019s efforts to\u00a0borrow\u00a0on concerns about its ability to raise all the money it needs to repay maturing debt and to fund ambitious planned expansion. Commitments were due on May 11.<\/span><\/strong><\/em><\/h3>\n<h3><span style=\"color: #000000;\">The company obtained a waiver on June 11 on its 7.875% bonds due in 2024 for any default that may occur from halted gaming operations due to the outbreak, according to the filing. Those\u00a0bonds\u00a0last traded at about 85 cents on the dollar and had fallen to as low as 47.5 cents in April, according to Trace data.<\/span><\/h3>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Some casinos have reopened since the deal was launched in May Investors pushed back on loan that offered more than 14% yield &nbsp; (Bloomberg) &#8212; Mohegan Gaming &amp; Entertainment\u00a0has pulled a $100 million leveraged loan sale that was intended to refinance debt and keep its casinos afloat during the pandemic. The company had offered to<\/p>\n","protected":false},"author":1,"featured_media":19402,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-19401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-1"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/19401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/comments?post=19401"}],"version-history":[{"count":1,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/19401\/revisions"}],"predecessor-version":[{"id":19403,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/posts\/19401\/revisions\/19403"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media\/19402"}],"wp:attachment":[{"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/media?parent=19401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/categories?post=19401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bestinsurance.gr\/a1\/wp-json\/wp\/v2\/tags?post=19401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}