River Rock Entertainment agrees settlement with noteholders

New York, April 2 – River Rock Entertainment Authority has signed support agreements with holders of its 9% series A senior notes due 2018, 8% series B tax-exempt senior notes due 2017, 6½% subordinated notes due 2019 and 9¾% senior notes due 2011.

The agreements commit the various parties to support the issuer as it works toward settlements of the notes, according to a news release.

River Rock will request the trustees for the three series of senior notes to file a trust instruction proceeding in state court in Minnesota under which the trustees will request court approval to implement the settlements, including pro rata distributions of cash to the holders of the three series of senior notes and discharge of the indentures.

The holder of the subordinated notes will also receive cash and the indenture will be discharged.

No tender offer will be made for any of the notes, River Rock said.

The support agreements were signed with institutional holders owning a majority of the 9% notes, the 8% tax-exempt notes, the sole holder of the subordinated notes and U.S. Bank NA as trustee for the 9¾% notes. UMB Bank, NA as trustee for the 8% and 9% and Wilmington Savings Fund, FSB as trustee for the subordinated notes also signed.

River Rock said it has entered into a commitment letter with Benefit Street Partners LLC for a term loan that will be obtained simultaneously with the consummation of the settlements.

The issuer expects to complete the settlements by July 31.

River Rock is a Geyserville, Calif., casino operator and an instrumentality of the Dry Creek Rancheria Band of Pomo Indians.

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