Mohegan Sun owners outline debt refinancing plan

UNCASVILLE, Conn. (AP) - The parent company of the Mohegan Sun casinos has announced a debt refinancing plan offering new terms to bond holders and reducing the loan amount.

The Mohegan Tribal Gaming Authority announced late Tuesday it is seeking to reduce debt from $675 million to $475 million.

The operator of the Indian-run casinos in Uncasville and Wilkes-Barre, Pa., also said it will offer to exchange $598 million in bonds for new notes with the same principal balance but with fewer restrictions. The gaming authority is asking holders of the old notes to accept amendments that would eliminate or waive restrictive covenants and eliminate certain default terms and modify or eliminate other provisions.

The announcement is the latest move by the Mohegan Sun seeking to improve its finances as it struggles with rising casino competition and a weak economy.