MTGA enters $1 billion loan agreement

UNCASVILLE, Connecticut – (PRESS RELEASE) -- The Mohegan Tribal Gaming Authority, or MTGA or the Authority, the operator of a gaming and entertainment complex located near Uncasville, Connecticut, known as Mohegan Sun, and a gaming and entertainment facility offering slot machines and harness racing in Plains Township, Pennsylvania, known as Mohegan Sun at Pocono Downs, or Pocono Downs, announced today that it has entered into a Second Amended and Restated Loan Agreement for up to $1.0 billion from a syndicate of 23 institutions and commercial banks, with Bank of America, N.A. serving as Administrative Agent. The total commitment on the new facility may be increased to $1.25 billion at the request of the Authority. The five-year senior secured revolving credit facility replaces the Authority's existing $450.0 million credit facility established in 2003, and includes a $300.0 million term loan conversion provision. The facility will be used to refinance the Authority's existing credit facility and for working capital and other business purposes, including the financing of the Project Horizon expansion at Mohegan Sun and the Phase II expansion at Mohegan Sun at Pocono Downs in Wilkes-Barre, Pennsylvania.

Banc of America Securities LLC, RBS Securities Corporation and Calyon New York Branch served as Joint Lead Arrangers and Joint Book Managers on the transaction, with Bank of America, N.A. serving as Administrative Agent, Citizens Bank of Connecticut and Calyon New York Branch serving as Co- Syndication Agents and Citicorp North America, Inc. and Wells Fargo Bank, N.A. serving as Co-Documentation Agents. The following banks were also participants in the transaction: Bank of Scotland, New York Branch; Commerzbank AG, New York and Grand Cayman Branches; CIT Lending Services Corporation; Key Bank N.A.; HSH Nordbank AG, New York Branch; The Bank of Nova Scotia; Sumitomo Mitsui Banking Corporation; Goldman Sachs Credit Partners L.P.; The Governor and Company of the Bank of Ireland; Comerica Bank; Deutsche Bank Trust Company Americas; TD Banknorth, N.A.; Allied Irish Banks PLC; National City Bank; People's Bank; Sovereign Bank; Bank Hapoalim and Native American Bank, N.A.

"We were extremely pleased with the strong commitments made by our existing bank group and for the commitments made by the other institutions that chose to participate in the syndication," said Leo M. Chupaska, Chief Financial Officer of MTGA. "We now have the necessary financing in place to complete Project Horizon and our Phase II plans at Mohegan Sun at Pocono Downs."