Nya:wëh Sgë:nö gagwë:göh,
Merry Christmas to you and yours. We’ve had excellent weather this month for the most part. Let’s hope we have a white Christmas. I’d like to share an excellent milestone we recently accomplished.
On November 29th, Seneca Gaming Corporation successfully closed on a new financing agreement, fully repaying the remainder of the $500 million originally borrowed in 2004 and 2005 to finance the build-out of the Nation’s Class III Casinos. Closing represents an historic moment in the evolution of the Nation’s Class III gaming business, and the fulfillment of a decade-long collaborative effort to reduce and eliminate SGC’s debt in furtherance of the Nation’s financial independence.
As the initial step in the recent transaction, SGC paid off its outstanding debt under its 2018 Credit Agreement. This will save SGC more than $4 million in interest expense over the next year as well as eliminate numerous burdensome loan covenants, including prior requirements for various “restricted” accounts.
As a second step in the transaction, SGC put in place a smaller line of credit with KeyBank intended to support operational flexibility. If there is a need for it, upon approval of Council and the SGC Board, SGC would have access to up to $100 million under the line of credit, on terms that exceed those availability to substantially all other Class III gaming operators.
From SGC’s perspective, the past 20 years have shown the importance of being prepared for unexpected events, and business lines of credit like this serve as a critical tool to help weather the inevitable storms that arise. Almost like a form of “insurance”, this line of credit is intended to allow SGC to meet its responsibility to be prepared not only in the event of challenges, but as strategic opportunities arise as well.
SGC is grateful for the Nation’s leadership, trust and support. This is a hard-earned victory for the Nation, and one worth celebrating.
Be safe and stay strong,
Dah ne’ hoh dih ae’
~ Matthew B. Pagels
