The casino arm of the federally-recognized Mohegan Tribe is reportedly endeavoring to obtain loans worth up to $100 million in order to help it survive the ongoing economic fallout engendered by the coronavirus pandemic.
According to a Wednesday report from the Bloomberg news service, the tribe’s Mohegan Gaming and Entertainment enterprise is responsible for overseeing operations at numerous North American casinos including eastern Connecticut’s giant Mohegan Sun facility. However, these venues were temporarily shuttered earlier this year in response to the coronavirus outbreak to leave the company with no significant incoming revenue stream.
Bloomberg reported that Mohegan Gaming and Entertainment is now in need of cash to help it stay afloat and is working with a range of first-lien lenders including Credit Suisse Group AG alongside independent financial advisory firm Rothschild and Company in hopes of being able to secure suitable loans.
The news service reported that the tribal casino operator has previously offered to pay a yield on any forthcoming loans of over 14% with a maturity date in October of next year. The enterprise if also purportedly eager to change the lending agreements attached to its existing advances so as to give it more headroom to navigate the coronavirus-induced slow-down.
Although Mohegan Gaming and Entertainment partially re-opened its Paragon Casino Resort facility in the small Louisiana city of Marksville yesterday, Bloomberg reported that potential lenders have seemingly been put off by the fact that some of the firm’s other properties are located on tribal lands. This state of affairs has purportedly raised questions as to whether investors would be able to fully exercise their rights as creditors such as in the liquidation and seizure of assets.
The news service moreover reported that Mohegan Gaming and Entertainment is thought to have debts worth around $400 million that are set to come due next year while it delayed a $19.7 million interest payment last month before ultimately delivering the funds within a 30-day grace period.
Finally, Bloomberg reported that Mohegan Gaming and Entertainment is hoping to maintain good relationships with lenders in order to fund ambitious plans that could see its footprint expand internationally within the next decade via projects in Greece, Japan and South Korea. The company is furthermore responsible for Canada’s Casino Niagara and Niagara Fallsview Casino Resort and will purportedly need access to the capital markets to realize these coming projects.