Mohegan Tribal prepays floaters, will redeem 9¾%, 11% notes Nov. 14

By Angela McDaniels

Tacoma, Wash., Oct. 14 – Mohegan Tribal Gaming Authority prepaid its floating-rate notes due 2017 and will redeem all of the 9¾% senior notes due 2021 and 11% senior subordinated notes due 2018 that remain outstanding after its tender offer on Nov. 14, according to a company news release.

Holders had tendered $566,087,000, or 96.77%, of the 9¾% notes and $99,768,000, or 99.58%, of the 11% notes as of 5 p.m. ET on Oct. 13. This is unchanged from the results as of 5 p.m. ET on Sept. 30, the early tender date.

The authority used proceeds from $500 million of new 7 7/8% notes due 2024 and $1.4 billion of new senior secured credit facilities to settle the 9¾% notes and 11% notes tendered as of 5 p.m. ET on Oct. 13 and to satisfy and discharge its obligations under the indentures governing the notes, including by depositing with trustee U.S. Bank NA enough funds to redeem the notes not tendered in the tender offers.

The tender offer began Sept. 19 and will continue until midnight ET on Oct. 17.

The authority paid 107.875% of par for the 9¾% notes and 100.65% of par for the 11% notes tendered by the early tender date, which includes a 3% early tender premium, plus accrued interest.

The floating-rate notes were issued in a $100 million private placement in November 2015 and carried an interest rate of Libor plus 445 basis points.

The authority is an Uncasville, Conn.-based operator of gaming and entertainment enterprises and an instrumentality of the Mohegan Tribe of Indians.

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