Wed 09/27/2023 17:50 PM
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Relevant Documents:
EMMA Notice (Sept 27)
EMMA Notice (March 31)

UMB Bank, as trustee for the SSRO notes issued by the Mashantucket Western Pequot Tribe in connection with Foxwoods Resort Casino, issued a notice to beneficial owners today detailing the upcoming interest payment scheduled to be made on Friday, Sept. 29, under the indenture dated July 1, 2013. The SSRO trustee will distribute $1.9 million of new business excess cash flow, or ECF, revenue as a partial interest payment on the SSRO notes to all owners on the record date of tomorrow, Thursday, Sept. 28. The interest rate, as stated in the notice, is 4.5364264 per $1,000.

The notice also confirms that in accordance with the SSRO indenture, the new business ECF received by the SSRO trustee is distributed as an interest payment on SSRO notes, regardless of the existence of a specified bank default. The SSRO trustee previously received a notice of the occurrence of a specified bank default from Bank of America because of certain financial covenant violations, as stated in a notice dated Sept. 14, 2014.

As a result, regularly scheduled interest payments were to be deferred until the last business day of the month when a cure or waiver of the specified bank default and any specified SSRO default occurs. However, today’s notice emphasizes that prior to the initial maturity date, the SSRO trustee will deposit new business ECF into the sinking fund and apply such funds to interest payments on the SSRO notes, irrespective of the ongoing specified bank default.

The $304 million 6.05% SSROs due 2031 last traded on March 23, 2022, at 22 with a 34% yield on $146 million in volume. The bonds were owed $12 million in interest on March 31, but the interest payment was deferred pursuant to the bank default, according to EMMA. The deferred interest did not constitute an event of default.
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