Moody’s Investors Service weighed in on southeastern Connecticut’s gaming tribes late last week, upgrading the Mohegans’ financial rating to “stable,” and attaching a “limited default” designation to the Mashantucket Pequots’ debt after the tribe secured a loan extension. The tribes, respective owners of Mohegan Sun and Foxwoods Resort Casino, have faced severe financial pressures in recent months due to the COVID-19 pandemic’s impact on their businesses. Moody’s upped the Mohegan Tribal Gaming Authority’s corporate family bond rating to “Caa1” from “Caa2” and its probability-of-default rating to “Caa1-PD” from “Caa2-PD.” The agency affirmed its “B1” rating on Mohegan’s first-lien revolver loan and its “Caa1” rating on Mohegan’s senior secured lien notes.
The Mohegan Tribal Gaming Authority has had its corporate family rating for debt raised to ‘Caa1’ with a ‘stable’ outlook, from ‘Caa2’, by Moody’s Investors Service Inc. The Mohegan Tribal Gaming Authority controls United States-based tribal casino operator Mohegan Gaming and Entertainment, a group with investment in Asia.
The ratings institution also improved the authority’s ‘probability of default’ rating to ‘Caa1-PD’ from ‘Caa2-PD’.
According to Moody’s, obligations rated ‘Caa’ are “judged to be speculative of poor standing and are subject to very high credit risk”.
Moody’s states that corporate family ratings classified as ‘Caa-PD’, are “judged to be speculative of poor standing subject to very high default risk, and may be in default on some but not all of their long-term debt obligations”.
Moody’s Investors Service weighed in on southeastern Connecticut’s gaming tribes late last week, upgrading the Mohegans’ financial rating to “stable,” and attaching a “limited default” designation to the Mashantucket Pequots’ debt after the tribe secured a loan extension.
The tribes, respective owners of Mohegan Sun and Foxwoods Resort Casino, have faced severe financial pressures in recent months due to the COVID-19 pandemic’s impact on their businesses.
Moody’s upped the Mohegan Tribal Gaming Authority’s corporate family bond rating to “Caa1” from “Caa2” and its probability-of-default rating to “Caa1-PD” from “Caa2-PD.” The agency affirmed its “B1” rating on Mohegan’s first-lien revolver loan and its “Caa1” rating on Mohegan’s senior secured lien notes.
Chatham Asset Management Sends Letter to Mohegan Tribal Gaming Authority
Chatham Will Not Provide Covenant Relief Absent Meaningful Principal Reduction of the 2024 Notes
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CHATHAM, N.J., Jan. 28, 2021 /PRNewswire/ Chatham Asset Management, LLC ( Chatham ), a private investment firm which manages funds that hold a substantial majority of the outstanding principal amount of the Mohegan Tribal Gaming Authority s (the Company ) 7.875% Senior Notes due 2024 (the 2024 Notes ), today sent a letter to Mario C. Kontomerkos, Chief Executive Officer of the Mohegan Tribal Gaming Authority (the Company ), regarding recent attempts by the Company to amend the negative covenant protections afforded to holders of the 2024 Notes.
Mohegan Gaming & Entertainment Announces Closing of Refinancing Transactions
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UNCASVILLE, Conn., Jan. 26, 2021 /PRNewswire/ Mohegan Gaming & Entertainment ( MGE or the Company ) today announced the closing of its previously announced refinancing transactions, including a notes offering and entry into a new credit agreement.
On January 26, 2021, the Company closed its previously announced private offering (the Offering ) of $1.175 billion in aggregate principal amount of 8.000% second priority senior secured notes due 2026 (the Notes ). The notes are guaranteed by certain of the Company s subsidiaries.
The Company has also entered into a Credit Agreement providing for approximately $263 million in a new revolving senior secured credit facility (the New Senior Secured Credit Facility ).