River Rock plans to enter financing market after resolving issues

By Jennifer Lanning Drey

Savannah, Ga., May 17 - River Rock Entertainment Authority expects to enter the financing market after resolving ongoing discussions with Sonoma County, Calif., Joseph Callahan, River Rock's chief financial officer, said Tuesday during the company's earnings conference call for the first quarter.

River Rock's 9¾% senor notes mature on Nov. 1.

"We are in active discussions with various financial institutions regarding the maturing debt and are exploring all options to refinance our senior notes," Callahan said.

River Rock is in ongoing discussions with Sonoma Country regarding a memorandum of agreement. Issues being discussed relate to reductions in the annual payments requirement to the country and revised requirements regarding the obligation to build an emergency access road, he said.

The company expects the issues to be resolved in the next few weeks, Callahan said.

River Rock had $43.7 million of cash and cash equivalents at March 31. The company believes its current cash balances and operating cash flows will provide sufficient resources to fund current budgeted capital expenditures and working capital needs, he said.

The company reported first-quarter EBITDA of $14.7 million, compared with EBITDA of $14.9 million for the same three months in 2010.

Net revenues for the first quarter were $31.3 million, down from net revenues of $32.3 million in the first quarter of 2010.

River Rock Entertainment is a Geyserville, Calif., casino operator controlled by the Dry Creek Rancheria Band of Pomo Indians.

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