Mohegan Tribal Gaming Authority, the operator of Mohegan Sun casinos in Connecticut and Pennsylvania, lowered the participation requirement on a $1.1 billion debt swap offer to complete the exchange.
The casino operator, which extended deadlines for the offer nine times, sought to refinance the debt before a credit line matures next month. The Uncasville, Connecticut-based company will accept the exchange of $500 million of notes due in 2012 and 2013 with at least 83.5 percent of holders having tendered, down from the previous threshold of 90 percent required in the offering, according to a statement today. Holders offered 83.6 percent of the notes, the company said.
The casino operator is overhauling its capital structure after it warned that its failure to refinance debt last year raised “substantial doubt” about its ability “to continue as a going concern,” according to a Dec. 29 regulatory filing. Mohegan had total debt including capital leases on Sept. 30 of $1.64 billion.
The company had previously said that minimum tender requirements were met for its $200 million of second-lien notes and for $375 million of subordinated notes due in 2014 and 2015.