Mohegan Tribal Gaming tenders for 8 1/8%, 8 3/8% notes

New York, July 15 - The Mohegan Tribal Gaming Authority said it has begun a cash tender offer and consent solicitation for any and all of its $200 million principal amount of 8 1/8% senior notes due 2006 and $150 million principal amount of 8 3/8% senior subordinated notes due 2011.

The Uncasville, Conn. casino operator said the offer will run through midnight ET on Aug. 11. The consent deadline is 5 p.m. ET on July 28.

Holders who tender are required to deliver consents and vice versa.

The consent solicitation is to amend the note indenture to eliminate substantially all the restrictive covenants.

For the 8 1/8% notes, the payment will be set as the present value on the initial settlement date of their maturity value on Jan. 1, 2006 of $1,000 per $1,000 principal amount plus the present value of interest from the last interest payment date until the maturity. The discount rate will be the yield on the 1.875% U.S. Treasury note due Dec. 31, 2005 plus 50 basis points. Accrued interest up to the settlement date will be subtracted. The total includes a $20.00 per $1,000 consent payment that will only be paid to holders who tender by the consent deadline.

For the 8 3/8% notes, the payment will be set as the present value on the initial settlement date of their redemption price at the first call date of July 1, 2006 of $1,041.88 per $1,000 principal amount plus the present value of interest from the last interest payment date until the call. The discount rate will be the yield on the 2.75% U.S. Treasury note due June 30, 2006 plus 50 basis points. Accrued interest up to the settlement date will be subtracted. The total includes a $20.00 per $1,000 consent payment that will only be paid to holders who tender by the consent deadline.

The pricing will be set at 2 p.m. ET on the consent date.

All holders will also received accrued interest up to but excluding the settlement date.

The tenders are subject to conditions including the receipt tenders of a majority of the notes and financing on acceptable terms. The offers are not conditional on each other.

Citigroup Global Markets Inc. (800 558-3745 or call collect 212 723-6106), Banc of America Securities LLC at (888 292-0070 or call collect 704 388-4813) and SG Americas Securities, LLC (call collect 212 278-5435) are dealer managers and solicitation agents. Global Bondholder Services Corp. is the information agent (866 857-2200 or for banks and brokers 212 430-3774).

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