The Mohegan Tribal Gaming Authority’s 8.0% secured notes due in 2026 have reached $99, the highest since early 2022, according to a CBRE dispatch.
Despite nearing par value, CBRE continued to rate these notes as Outperform as the company approaches a refinancing next year.
‘We are optimistic about this refinancing due to various strategies available to Mohegan and lower borrowing costs. The current yield on the ’26s is below 9%, which could help in refinancing efforts’, the brokerage added.
‘While our outlook differs from Mohegan’s ratings of B-/Caa1, we do not expect upgrades until a refinancing is confirmed or agencies reassess their ratings. These changes could happen if a new capital structure effectively protects the restricted group.’
CBRE analysts also believe investor interest in Mohegan will remain strong due to upcoming refinancing opportunities and corporate events.
CBREÂ analysts have recently improved the operator’s outlook thanks to progress in its South Korean project, which is ramping up revenue faster than expected.
Mohegan’s INSPIRE integrated resort in South Korea has helped boost the company to achieve the highest quarterly net revenues in its history, reaching $504.16 million in the second quarter of 2024.
