Refinancing Deal for Turning Stone

(Verona, NY) At a time when almost the entire gaming industry is experiencing shortfalls from prior year levels even in places like Las Vegas and Connecticut and the well is nearly dry for bank deals with casino enterprises, the Oneida Indian Nation’s Turning Stone Resort and Casino in Upstate New York is beating the odds with a strong financial performance that has enabled them to refinance to lower interest rates according to the tribe’s chief financial officer.

“While several leading gaming venues have seen revenues fall substantially and have experienced difficulty paying debts, while not being able to meet their financial covenants, as well as seen investors scramble away, we have cut expenses without affecting quality helping us to remain competitive, worked to maintain or increase revenues and put together a syndicated bank deal to reduce what we pay out in debt that financed a previous expansion,” stated Dave Rebich, CFO for the Oneida Nation and its enterprises, including Turning Stone.

Rebich said, “On October 30, we closed on a bank arrangement primarily to refinance our 9.125% Senior Notes currently totaling more than $125 million. The Royal Bank of Scotland PLC is the lead agent in a regional bank group consisting of RBS Citizens, N.A., M&T Bank, NBT Bank National Association, Key Bank National Association, and Community Bank, N.A..”

He noted, “The loan, initially amounting to $101 million will begin amortizing on a straight-line sixty-six month basis after an eighteen month interest only period and will mature on December 15, 2013. The Line of Credit initially amounting to and funding at $24 million will also have a December 15, 2013 maturity date, but could be renewed.” Rebich added, “Both the loan and the line will be LIBOR based with a spread of 4.50 percent. The primary covenants are a 3.50 debt service coverage ratio, a 1.25 Fixed Charge coverage ratio.”

Refinancing Deal for Turning Stone

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