The Arkansas Racing Commission has voted to allow the Saracen Casino to make a change in its refinancing that will save approximately $30 million annually.
According to a story n the Arkansas Times, Scott Harden, a spokesman for the commission said that under rules established by the commission, it must be informed of any changes in the source of financing for casino’s that have state licenses.
“As required, Saracen inform ed the Commission of plan to refinance,” Harden was quoted as saying. “Based on the Pine Bluff property’s performance (outperforming all projections), Saracen has the ability to secure a substantially lower interest rate, which will save roughly $30 million annually.”
Harden said the commission voted unanimously to allow Saracen to proceed.
Arkansas Times reported the refinancing of $275 million in debt and a $100 million line of credit will reduce the interest rate from 13 percent to about 3 percent with a lending group led by Wells Fargo.
Recent improvements in the credit rating of Saracen Development LLC by two financial rating services, Moody’s and Standard and Poor helped in the refinancing.
Quapaw Nation Business Committee Chairman Joseph Tali Byrd said this in October about the refinancing.
“Moody’s and S&P based their decisions on factors like our handling of the COVID-19 crisis, the financial solvency of our business and our superiority in the Arkansas gaming market. This rating upgrade and the confidence it represents servers Quapaw Nation citizens well, along with the citizens of Pine Bluff and Jefferson County. This is fantastic news as we continue to strengthen our partnerships within the community.”
