GEYSERVILLE -- River Rock Entertainment Authority, which oversees the River Rock Casino, said today it has reached an agreement to restructure $200 million in debt with creditors.
Holders representing more than 60 percent of the outstanding principal amount decided not to pursue default during the restructuring of its debt.
Terms of the deal, known as a Forbearance and Support Agreement, were not immediately disclosed, but the casino said it would make the terms public at some point in the future. Operations at the casino will not be impacted by the restructuring.
The casino said it expects to launch the exchange offer by Nov.18, and consummation of the restructuring is expected to occur in December.
In 2003, the casino sold $200 million worth of senior notes to investors, which came due on Nov. 1 at a rate of 9.75 percent.
The casino will use the proceeds from the offering of the new notes, along with cash on hand and $27.6 million of 6.50 percent senior notes due 2019, to retire all of its outstanding debt due this year.
In October, the casino said it was hoping to raise $205 million so that it could pay off the existing debt.
River Rock has about $38 million in cash on hand, according to the casino.