Chukchansi
Casino Expansion Plans Set for 2006
The Chukchansi Economic Development
Authority (CEDA) successfully completed the
refinancing of its outstanding debt, setting
the stage for a proposed expansion of the premier
Chukchansi Gold Resort & Casino, located
35 miles north of Fresno and 25 miles south
of Yosemite National Park.
CEDA
successfully closed the $310 million bond offering
through two tranches: $200 million of 8% Senior
Notes due in 2013, and $110 million of Floating
Rate Senior Notes due in 2012. The Notes were
rated BB- by Standard & Poor's and B2 by
Moody's.
The
Picayune Rancheria of the Chukchansi Indians
will use the proceeds from the offering to refinance
prior high-interest construction and vendor
indebtedness incurred during the construction
of Chukchansi Gold Resort & Casino.
The
proceeds will also provide millions to fund
the Casino's expansion in Madera County, which
launches in early 2006. Chukchansi Gold Resort
& Casino plans to add rooms and a spa facility
to its gaming operation, which is expected to
provide hundreds of additional jobs to the local
economy during construction and after completion
the following year.
"We
were extremely pleased to be welcomed by the
investment community as we explained how our
Tribe plans to expand into the future,"
said Joyce Burel, Tribal Chairperson of the
Picayune Rancheria of Chukchansi Indians. "We
continue to make great progress in becoming
financially independent and look forward to
an exciting new chapter of development surrounding
our Tribe's business."
Merrill
Lynch acted as sole manager of the offering.
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