Mohegan Tribal to pay down debt via new notes; balance sheet improves

By Lisa Kerner

Charlotte, N.C., Nov. 19 – The Mohegan Tribal Gaming Authority entered into a facility agreement with UBS AG, London Branch under which it may issue from time to time up to $200 million of senior unsecured notes through Nov. 19, 2016.

“This facility agreement will allow us to take advantage of a rapid balance sheet deleverage,” said chief financial officer Mario Kontomerkos during the company’s earnings conference call on Thursday.

Proceeds will be used to refinance higher priced debt.

“We finished up our fiscal year with the lowest total leverage we’ve reported under our bank credit facility since March of 2008, over seven years ago, at 4.93 times,” Kontomerkos said.

Long-term debt was $1.57 billion, compared to about $1.68 billion a year ago.

Mohegan had cash and cash equivalents of $65.8 million at Sept. 30, compared to $49.1 million for the prior-year period.

As of Sept. 30, $21 million was drawn on the company’s $100 million revolving credit facility, while no amounts were drawn on its $16.5 million line of credit.

The company had about $76 million of borrowing capacity under its revolving credit facility and line of credit at quarter end.

The company’s fourth-quarter net revenues were flat year over year at about $339 million.

Adjusted EBITDA was up 20.4% year over year at $92.9 million, while adjusted EBITDA margin was up 450 basis points at about $73 million.

Net income was up 86.4% at $36.5 million.

Mohegan Tribal Gaming is an Uncasville, Conn., operator of gaming and entertainment enterprises.

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