PLYMOUTH, CA – The Ione Band of Miwok Indians has closed a $110,000,000 delayed draw term loan facility sourced from Gaming and Leisure Properties (GLPI). The tribe has an option at the end of the loan term to satisfy the loan obligation by converting the outstanding principal into a long-term lease with an initial term of 25 years and a maximum term of 45 years. The agreements were entered into subsequent to receiving a declination letter from the National Indian Gaming Commission (NIGC) providing a declination letter with respect to the transaction documents, including the long-term lease.
“This transaction represents the first time that a REIT has provided both project financing and/or a long-term lease option to a tribe for purposes of direct investment in a gaming asset on tribal trust lands,” said Ione Tribal Chairperson Sara Dutschke. “The tribe is pleased to have found a partner in GLPI who placed their trust in the tribe, supporting our efforts toward self-determination and self-sufficiency through the financing of the construction of Acorn Ridge Casino, a tribal enterprise two decades in the making. We are proud to be part of this innovative financing structure and hope that our work with GLPI to successfully bring this transaction to a close provides new long-term financing opportunities for tribes across the nation.”
The tribe is using the net proceeds of the loan to develop Acorn Ridge Casino, a state-of-the-art boutique gaming and culinary facility designed to offer patrons an elevated gaming experience with the latest slots and classic table games, dining experiences featuring the region’s wines, and unique outdoor recreational and entertainment spaces. A groundbreaking event to celebrate the planned casino was held on Oct. 24, 2024. The tribe has engaged Warner Gaming to develop, manage and operate the facility.
“We appreciate the opportunity to assist the Ione Band of Miwok Indians with construction financing for the development of Acorn Ridge Casino,” said Peter Carlino, Chairman and CEO of GLPI. “We believe this lease structure offers tribes an efficient alternative to access long-term capital in Indian Country, and in this instance, the long-term lease could potentially be used to expedite the expansion of Acorn Ridge.”
TFA Capital Partners served as a financial advisor to both Ione and GLPI in this transaction. Maier Pfeffer Kim Geary & Cohen LLP served as legal counsel to Ione and Drummond Woodsum & MacMahon served as legal counsel to GLPI.
