Mashantuckets ‘realign’ loan, bump forbearance agreement to ’19
Mashantucket — The Mashantucket Pequot Tribe, owner of Foxwoods Resort Casino, announced Tuesday that it has “realigned” an outstanding loan and extended its forbearance agreement with senior lenders to June 30, 2019.
The forbearance agreement had been set to expire Dec. 31.
Under forbearance, lenders avoid taking debt-collection action against a borrower that has failed to meet its obligations. The Mashantuckets defaulted on more than $2.2 billion of debt in 2009, reached a $1.7 billion debt-restructuring agreement with lenders in 2013 and failed to meet the terms of that agreement in 2014. Since then, the tribe’s been operating under a forbearance agreement that’s been extended multiple times.
As of June 30, the tribe had nearly $1.8 billion of debt, according to Foxwoods’ last published quarterly report, which was posted online in August. Foxwoods’ annual report for the fiscal year that ended Sept. 30 is expected this week.
The tribe announced it has extended the maturity date of its “Term A Facility,” which is administered by Bank of America N.A., to June 30, 2020. The tribe said the loan was “realigned” to mirror the maturity of another loan, its “Term B Facility.” The Term A Facility had been scheduled to mature July 1, 2018.
“Both extensions commenced on Dec. 12 with the assistance of Centerview Partners, LLC,” the tribe said in a statement.
As of June 30, the Term A Facility’s balance was nearly $122.6 million. The Term B Facility totaled $264.2 million.
“With the reality of competition expanding throughout the northeast, Foxwoods continues to add a variety of nongaming and family-friendly offerings in preparation for the imminent changes to come,” said Rodney Butler, the tribe’s chairman. “By realigning our Term A obligations and extending our forbearance agreement, we can better ensure that our ongoing plans will be compatible with longterm profitability.”
The Mashantuckets and the Mohegan Tribe, which owns Mohegan Sun, have formed a joint venture to pursue development of a $300 million casino in East Windsor. The state legislature authorized the project in June.