Chatham Asset Management Offers Refinancing Support to Mohegan Tribal Gaming Authority

Proposes Holistic Refinancing of the Restricted Group Capital Structure

CHATHAM, N.J.--(BUSINESS WIRE)--Chatham Asset Management, LLC (“Chatham”), a private investment firm and the largest creditor of Mohegan Tribal Gaming Authority (“MOHEGN” or the “Company”), today issued the following statement regarding the Company’s 8.000% Second Priority Senior Secured Notes due February 1, 2026 (the “2026 Notes”) and 13.250% Senior Notes due December 15, 2027 (the “2027 Notes”):

“MOHEGN continues to perform well, highlighted by strong financial results in the recently reported Fiscal Third Quarter 2024, which saw the Company achieve double-digit growth in the Digital segment, attractive ramp trends at the newly opened INSPIRE Entertainment Resort, and continued stable performance of the core domestic properties. Altogether, MOHEGN has a diverse portfolio of growing assets generating significant free cash flow with untapped commercial value. From this advantageous position, coupled with a robust capital markets landscape, we believe MOHEGN can, and should, pursue an immediate refinancing of its entire restricted group capital structure, thereby extending maturity runway and refocusing operational resources on the continued growth of the business.

“As such, Chatham is prepared to engage the Company on a refinancing of the entire restricted group capital structure, including: (i) extending the maturity of Chatham’s position in the 2027 Notes, outside of a contemplated refinanced Senior Secured maturity (of the 2026 Notes) (ii) a refinancing of the 2026 Notes with Chatham as a significant investor. We believe our support for a holistic refinancing of the entire restricted group capital structure affords the Company better capital markets execution, a lower overall cost of capital, and a preferred maturity profile over a staggered refinancing approach.

“As a significant and supportive creditor of MOHEGN, we remain appreciative of our productive dialogue with management, and we hope to soon execute a refinancing transaction that will enable the team to continue to build on its strong momentum.”

Funds affiliated with Chatham hold a significant position in both the 2026 and 2027 Notes.