December 28, 2017

Eyeing Springfield casino, Foxwoods owner realigns long-term debt

Flickr user Justin Henry
Flickr user Justin Henry
Foxwoods Resort Casino

The tribal owner of Foxwoods Resort Casino said this week it has obtained extensions to repay its long-term debt in the face of anticipated competition next fall from the Bay State.

The Mashantucket Pequot Tribal Nation, owner of the Mashantucket Pequot Gaming Enterprise and Foxwoods, said Tuesday it has extended its long-term debt repayment plan to June 30, 2020, and a forbearance agreement with senior lenders to June 30, 2019.

The changes are being made in part because of the expected fall 2018 debut of competition from MGM Resort International's $960 million hotel and resort casino in Springfield, Mass., said MPTN Chairman Rodney Butler. The new casino is expected to siphon customers and revenue from Foxwoods and its Uncasville neighbor, Mohegan Sun.

The Mashantuckets and Mohegans are planning to build a third casino in East Windsor, but MGM also wants to erect a casino in Bridgeport.

"With the reality of competition expanding throughout the Northeast, Foxwoods continues to add a variety of non-gaming and family-friendly offerings in preparation for the imminent changes to come," Butler said in a statement. "By realigning our Term A obligations and extending our forbearance agreement, we can better ensure that our ongoing plans will be compatible with long-term profitability."

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