Mohegan Tribal Gaming Authority has completed a major refinancing effort, strengthening its financial position by securing $1.2 billion through new secured notes, establishing a fresh $250 million revolving credit facility, executing a private notes exchange, and extending the maturity of a substantial portion of its unsecured debt.
The transactions included the release from escrow of proceeds from an April 10, 2025, notes offering. On April 24, 2025, Mohegan and its wholly-owned subsidiary, MS Digital Entertainment Holdings, assumed obligations related to $750 million of 8.250% first priority senior secured notes due 2030 and $450 million of 11.875% second priority senior secured notes due 2031.
These notes were originally issued by another subsidiary, Mohegan Escrow Issuer.
The company also entered into a new five-year, $250 million senior secured revolving credit facility. Combined with proceeds from the notes offering and existing cash reserves, the funds are being used to redeem Mohegan’s 8.000% notes maturing in 2026, repay all outstanding loans under its previous revolving credit facility, and cover associated fees and expenses.
Mohegan and its co-issuer completed a private exchange with an investor, swapping approximately $226 million of its existing 13.25% senior unsecured notes due 2027 for $250 million in new 2031 secured notes.
Additionally, the investor agreed to exchange $90 million of the 2027 notes for newly issued 13.25% unsecured notes due 2029, effectively extending the maturity of those holdings by one year beyond initial escrow conditions.
Mohegan also provided holders of the remaining 2027 notes the option to exchange them for 2029 notes under the same terms. The Mohegan Tribe of Indians of Connecticut acquired $100 million of the outstanding 2027 unsecured notes through a separate private transaction. The Tribe agreed to swap those notes for an equivalent principal amount of new 13.25% senior unsecured notes maturing in 2032.
James Gessner Jr., Chairman of the Mohegan Tribe, commented: “The Mohegan Tribe is thrilled to make this investment into notes of Mohegan, providing the company with extended maturity runway and financial flexibility.
“This is a clear demonstration of our unwavering commitment to the success of Mohegan and strengthens our alignment with investors as we redeploy capital back into the company, given our long-term outlook and confidence in its leadership team.”
Ari Glazer, Chief Financial Officer of Mohegan, added: “With today’s transactions, Mohegan has created substantial financial flexibility, which will provide a strong foundation for the company for years to come. Mohegan will have no material debt maturities for the next four years.
“We will continue to prudently manage our capital structure to reduce leverage, improve borrowing costs, and create greater strategic flexibility for years to come.”
The notes sold through the April offering and the subsequent exchange were issued privately under exemptions from registration requirements outlined by the Securities Act of 1933. They were made available exclusively to qualified institutional buyers and certain non-U.S. investors.
Original article: https://www.yogonet.com/international/news/2025/04/28/103064-mohegan-closes-12-billion-refinancing-extends-debt-maturities-to-2029-and-2032
