Offers Exchange of 2026 Notes to 2027 Notes
Chatham Asset Management, LLC (“Chatham”), a private investment firm and the largest creditor of Mohegan Tribal Gaming Authority (“MOHEGN” or the “Company”), today issued the following statement regarding the Company’s 8.000% Second Priority Senior Secured Notes due February 1, 2026 (the “2026 Notes”) and 13.250% Senior Notes due December 15, 2027 (the “2027 Notes”):
“As a significant and supportive creditor of MOHEGN, Chatham is pleased with the recent performance of the Company, highlighted by the disciplined operations of the business through COVID and swift recovery of earnings thereafter. Moreover, MOHEGN has exciting momentum in growth channels across iGaming and new resort properties. From this position of strength, we believe the Company is currently well placed to address its upcoming debt maturities, in particular the 2026 Notes, which go current pay on February 1, 2025.
“Accordingly, Chatham is willing to provide a $250,000,000 backstop of a $400,000,000 down-tier exchange of the 2026 Notes at par (waiving the current $104 call premium) into the 2027 Notes at par (the “Exchange”). We believe the Exchange, bringing net secured leverage below 2.0x, would provide meaningful benefit to the Company in the execution and pricing of a subsequent refinancing of the remaining $775,000,000 of 2026 Notes, thereby lowering MOHEGN’s overall long-term cost of capital and providing additional maturity runway.
“We have appreciated our productive dialogue with management and hope to execute an agreeable refinancing transaction that will enable the team to focus on the continued execution of its strategic vision for the Company.”
Funds affiliated with Chatham hold a significant position in both the 2026 and 2027 Notes.
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Contacts
Jonathan Gasthalter/Sam Fisher
Gasthalter & Co.
(212) 257-4170
