Mohegan lacks needed consents for 9¾%, scraps tender for 11% notes

By Susanna Moon

Chicago, May 1 - The Mohegan Tribal Gaming Authority announced the results of its consent solicitation for its 9¾% senior notes due 2021 and terminated its tender offer for its 11% senior subordinated notes due 2018.

The authority failed to secure consents for at least a majority of the 9¾% notes by the end of the solicitation at 5 p.m. ET on April 30, according to a press release.

As a result, the authority canceled its tender offer for the 11% notes because it decided that the financing condition could not be satisfied given the results of the consent solicitation, the release said.

The authority solicited consents to amend the 11% notes to eliminate substantially all restrictive covenants and eliminate or modify some events of default and related provisions.

The consent solicitation and tender offer began April 22.

9¾% notes consent solicitation

As previously announced, the authority sought consents to permit the authority to refinance its outstanding subordinated notes with senior unsecured debt.

Holders needed to be of record as of 5 p.m. ET on April 21.

The consent fee would have been $5.00 per $1,000 principal amount.

The consent solicitation required consents from holders of a majority of the outstanding 9¾% notes and the execution of a supplemental indenture effecting the proposed amendment.

RBS (203 897-6145 or 877 297-9832), BofA Merrill Lynch (980 387-3907 or 888 292-0070), Credit Suisse (212 538-2147 or 800 820-1653), SunTrust Robinson Humphrey (404 439-7554 or 800 685-4786), Credit Agricole CIB (212 261-7802 or 866 807-6030) and Jefferies (203 363-8273 or 888 708-5831) were the solicitation agents in connection with the 9¾% notes consent solicitation.

D.F. King & Co., Inc. (212 269-5550 for banks and brokers or 800 549-6650) was the information agent and tabulation agent.

11% notes tender offer

The tender offer for the 11% notes had been set to end at midnight ET on May 19. The early tender deadline for the offer was 5 p.m. ET on May 5.

The total purchase price would have been $1,006.50 per $1,000 principal amount of notes tendered by the early date. The total amount includes an early tender payment of $30.00 per $1,000 principal amount.

Holders who tender after the early deadline would have received $976.50 per $1,000 principal amount.

Holders also would have received accrued interest to but excluding the settlement date.

Holders who tendered their notes would have had to consent to the proposed amendments and vice versa.

The authority said it expected to redeem any 11% notes not tendered and purchased under the tender offer.

The tender offer is conditioned on the authority completing a financing transaction resulting in proceeds of at least $286 million.

The tender offer was not conditioned on any minimum participation by holders, including the minimum participation needed to complete the consent solicitation for the 11% notes, according to a previous press release.

RBS, BofA Merrill Lynch, Credit Suisse, SunTrust Robinson Humphrey, Credit Agricole CIB and Jefferies are dealer managers for the tender offer and solicitation agents for the 11% notes consent solicitation. D.F. King & Co., Inc. is also the information agent and tender agent and depositary for the 11% notes.

The authority is an Uncasville, Conn., operator of gaming and entertainment enterprises.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.