Mohegan Tribal Gaming Authority Announces Pricing Of $85 Million Of Additional Senior Notes

Aug 07, 2015, 07:30 ET from Mohegan Tribal Gaming Authority

UNCASVILLE, Conn., Aug. 7, 2015 /PRNewswire/ -- The Mohegan Tribal Gaming Authority, or the Authority, announced today that it has priced the offering of its senior notes due 2021 (the "additional notes"), which was commenced on August 6, 2015.  The additional notes will be issued under the Indenture, dated as of August 15, 2013, among the Authority, as issuer, the Mohegan Tribe of Indians of Connecticut, the guarantors party thereto, and U.S. Bank National Association, as trustee, under which the Authority currently has $500,000,000 of 9.75% senior notes due 2021 outstanding.  The Authority will issue $85 million in aggregate principal amount of additional notes at a price equal to 102.5% of par, plus accrued and unpaid interest from March 1, 2015. The additional notes will be senior unsecured obligations of the Authority and will be guaranteed by certain of its subsidiaries. The offering is expected to close on August 11, 2015, subject to customary conditions.

The additional notes will bear interest at a rate of 9.75% payable semiannually, in cash in arrears on March 1 and September 1 of each year, commencing September 1, 2015.  The additional notes will mature on September 1, 2021.

The Authority expects to use the net proceeds from the offering to finance the redemption of $85,000,000 of its outstanding 11% senior subordinated notes due 2018 and to pay related fees and expenses.

The additional notes and related guarantees are being offered only to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended or, outside the United States, to persons other than "U.S. persons" in compliance with Regulation S under the Securities Act. The additional notes and related guarantees have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This notice is issued pursuant to Rule 135c of the Securities Act, and does not constitute an offer to sell the additional notes, nor a solicitation for an offer to purchase the additional notes.

About the Authority

The Authority is an instrumentality of the Mohegan Tribe of Indians of Connecticut, or the Tribe, a federally-recognized Indian tribe with an approximately 544-acre reservation situated in southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority has been granted the exclusive authority to conduct and regulate gaming activities on the existing reservation of the Tribe, including the operation of Mohegan Sun, a gaming and entertainment complex located on an approximately 185-acre site on the Tribe's reservation. Through its subsidiary, Downs Racing, L.P., the Authority also owns and operates Mohegan Sun Pocono, a gaming and entertainment facility located on an approximately 400-acre site in Plains Township, Pennsylvania, and several off-track wagering facilities located elsewhere in Pennsylvania.

The Tribe's gaming operation at Mohegan Sun is one of only two legally authorized gaming operations in southern New England offering traditional slot machines and table games. Mohegan Sun currently operates in an approximately 3.1 million square-foot facility, which includes Casino of the Earth, Casino of the Sky, Casino of the Wind, 100,000 square feet of retail space, including The Shops at Mohegan Sun, a 10,000-seat Mohegan Sun Arena, a 350-seat Cabaret Theatre, 100,000 square feet of meeting and convention space and the 1,200-room luxury Sky Hotel Tower. Mohegan Sun Pocono operates in an approximately 400,000-square-foot facility, offering traditional slot machines and table games, live harness racing and simulcast and off-track wagering, a 238-room hotel, 20,000 square feet of meeting and convention space, several dining and retail options and a bus passenger lounge. More information about the Authority and its properties can be obtained by visiting www.mohegansun.com, www.mohegansunpocono.com or www.mtga.com.

Forward-Looking Statements

Some information included in this press release may contain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements can sometimes be identified by the use of forward-looking words such as "may," "will," "anticipate," "estimate," "expect" or "intend" and similar expressions. Such forward-looking information may involve important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the Authority. Information concerning potential factors that could affect the Authority's financial results is included in its Annual Report on Form 10-K for the fiscal year ended September 30, 2014, as well as in the Authority's other reports and filings with the Securities and Exchange Commission. Any forward-looking statements included in this press release are made only as of the date of this release. The Authority does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Authority cannot assure that projected results or events will be achieved or will occur.

Contacts:
Robert J. Soper
President
Mohegan Tribal Gaming Authority
(860) 862-8000

Mario C. Kontomerkos
Chief Financial Officer
Mohegan Tribal Gaming Authority
(860) 862-8000

SOURCE Mohegan Tribal Gaming Authority



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