Finance Lending
Sacramento-Area Indian Casino Gets $77M in Final Financing
Oct 3, 2008
By: Scott Baltic, Contributing Editor

The Shingle Springs Tribal Gaming Authority, an affiliate of the Shingle Springs Band of Miwok Indians, closed yesterday on $77 million in financing for the Red Hawk Casino in Shingle Springs, Calif., about 20 miles east of Sacramento.

Bank of America was lead arranger in the transaction, which covers financing primarily for the purchase of furniture, furnishings and equipment for the casino project, which broke ground in June 2007 and is scheduled to open by year’s end.

When completed, the Red Hawk Casino will feature 2,000 slot machines, 75 table games, six restaurants, four bars, retail and childcare facilities, and 3,000 spaces of lighted, covered parking. Also under construction is a new interchange on U.S. Highway 50, which will make access to the casino easier and which is being funded by the tribe with no taxpayer money.

Although no overall figure for the project’s value has been officially released, Tim Cope, president & CFO of Lakes Entertainment Inc., told CPN that the primary funding was a $450 million bond issue that included the cost of the highway interchange. The financing package that closed yesterday was the only other funding, he said. Lakes Entertainment, based in Minneapolis, will manage the casino for the Shingle Springs Band of Miwok Indians.

Lakes Entertainment currently has development and management or financing agreements with four Native American tribes for five separate casino sites in Michigan, California and Oklahoma, including the Cimarron Casino for the Iowa Tribe of Oklahoma and the Four Winds Casino Resort in New Buffalo, Mich., for the Pokagon Band of Potawatomi Indians. Lakes is also the majority owner of WPT Enterprises Inc., which operates the World Poker Tour TV series.

When completed, the Red Hawk Casino will feature 2,000 slot machines, 75 table games, six restaurants, four bars, retail and childcare facilities, and 3,000 spaces of lighted, covered parking. Also under construction is a new interchange on U.S. Highway 50, which will make access to the casino easier and which is being funded by the tribe with no taxpayer money.

 
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