Image via Chukchansi Gold Facebook page

published on February 7, 2022 - 12:46 PM
Written by The Business Journal Staff

The Chukchansi Economic Development Authority, operator of Chukchansi Gold Resort & Casino, announced a major debt clearing move on Monday.

The Authority repaid the remaining balance of $9.7 million in secured notes that were due in 2028.

Due to the strong performance of the casino and the Authority’s conservative financial decision-making, more than 90% of debt outstanding since early 2021 has been cleared away, freeing up “valuable resources for reinvestment in its businesses and its community,” according to a news release.

Janet Bill, chairperson of of the Authority, said, “The repayment of all of the outstanding Notes represents a giant step for CEDA. Going into the debt restructuring, the CEDA Board held steadfast in its primary goal to be debt free as soon as possible. We are thankful to our employees and management team for making Chukchansi Gold the region’s best resort casino, and to our valued customers for their loyalty and continued patronage. They have enabled us to meet a crucial step in strengthening our balance sheet, positioning us to maintain the region’s highest quality resort casino experience while allowing the Tribe to expand its economic development initiatives in the region.” 

The Authority has redeemed all of the $193 million in notes issued in 2021 as part of a successful debt restructuring — seven years in advance of their final maturity date, according to the release.

Frank King of Stuyvesant Square Advisors, the firm that serves as financial advisor to the Authority, said,

“CEDA’s restructuring transaction has proven to be a huge success for the Tribe, and the unprecedented early retirement of its Notes reflects the commitment of its leadership to set a clear and unburdened path to economic self-sufficiency for its community.”
 


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