Case Studies

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Scarlet Pearl Casino Resort: the Mississippi Gulf Coast’s newest casino opened December 9, 2015

The Scarlet Pearl is Mississippi’s newest casino opening in December of 2015.

The Assignment:  Assist in raising the last tranche of project financing.

The bulk of the debt financing for the project was provided by a syndicate of banks with only a $25MM trance of secured financing left to fill when the project was closer to opening. It was that last piece of the puzzle, however, that proved to be more difficult to raise than expected with several large money center banks turning down the request and at least one traditional secured lender also effectively declining.

Bill worked on the project while at a former institution and it was because of their good working relationship back then that the company’s CEO reached out to Bill for thoughts on financing options. Bill’s approach to finding the right fit for the company was to access the opportunity from the perspective of the investor. By determining why an institution would do a particular deal could the ideal partner be found for the sponsor, his CEO and their project. In fact the ideal institution was identified and contacted and after a fruitful series of discussions, a site diligence visit and a relatively short period of negotiation a deal was struck for that institution to provide up to $25MM in capital at very competitive fee and spread levels. By understanding the motivation of the project’s sponsor and CEO and then by focusing on the unique qualities of one particular institution TFACP was able to assist in bringing that transaction to a close.

biloxi-pointe-model

Biloxi Pointe Resort Casino: coming in 2018

Biloxi Pointe Resort Casino is a planned new $265 million 781,000 square foot premier full-service destination resort casino to be located in the Back Bay area of Biloxi, MS on the site of the former Heinz plant. The Biloxi Pointe Resort Casino will be easily accessible from the New Orleans and Atlanta areas as well as being within a 300-mile radius feeder market of approximately 9 million people, largely from Mississippi, Louisiana, Alabama and Florida. Biloxi Pointe Resort Casino will offer gaming, hotel, multiple entertainment venues including approximately 71,000 square feet of meeting and exhibit space, as well as a unique selection of six restaurants and bars, all in one location within the historic Biloxi Gulf Coast region with a rich tradition of resort entertainment.

The Assignment:  Find a gaming manager/developer team and then assist in raising the capital needed to build Biloxi Pointe.

Through his prior association with the sponsor, Mr. Chris Ferrara, and his team, Bill Newby was brought into advise the project team on the selection of a manager and development team. The manager selected is our strategic partner, the Hartmann Group, and the gaming savvy folks at Keating Consulting. With the manager/design roles comfortably in the capable hands of Hartmann/Keating, TFACP, Hartmann and Chris’s in-house team will collectively focus on the next aspect of the assignment: raising the balance of the equity needed to complement Chris’ sizable prior investment in the site as well as the second lien debt used to augment expected senior EB-5 proceeds.

TFACP’s unique perspective on gaming industry managerial and design talent, Mississippi Gulf Coast economic and gaming performance as well as project finance experience have made TFACP the ideal partner for Chris Ferrara and his core advisors.

Wynn Resorts and Stations Casinos:  a Study of Cross Institutional Relationships

Relationships are important to the principals at TFACP and nothing makes that point better than a few examples of work done for both the Wynn and Station Casinos organizations. In both cases below, the principals at TFACP performed work for these companies while at three different financial institutions thereby demonstrating that relationships, knowledge and insight, more than institutions per se, define value added.  Transactions completed while we were at Bank of America appear with a (B) next to the date; those at UBS Investment Bank have a (U) and Jefferies & Company a (J)

  • Joint Bookrunner – $1.32bn 1st Mortgage Notes (2010) (U)
  • Joint Global Coordinator/Joint Global Sponsor/Joint Bookrunner – $1.9bn Wynn Macau Initial Public Offering (2009) (U)
  • Joint Bookrunner – $400mm 1st Mortgage Notes (2007) (B)
  • Co-Lead Arranger – $1.0bn Wynn Resorts Credit Facility (2007) (B)
  • Co-Lead Arranger – $1.55bn Wynn Resorts Macau Sr. Credit Facility (2007) (B)
  • Co-Lead Arranger – $1.125bn Sr. Credit Facility (2006) (B)
  • Co-Lead Arranger – $745.9mm Wynn Resorts Macau Sr. Credit Facility (2005) (B)
  • Co-Lead Arranger – $1.0bn Sr. Credit Facility (2004) (B)
  • Joint Bookrunner – $1.3bn 1st Mortgage Notes (2004) (B)
  • Financial Advisors – Airplane Acquisition (2004) (B)
  • Co-Manager – $271mm Equity Follow-On (2004) (B)
  • Joint Bookrunner – $370mm 2nd Mortgage Notes (2002) (B)
  • Co-Lead Arranger – $1.0bn Sr. Credit Facility (2002) (B)
  • Placement Agent – $189mm FF&E Facility (2002) (B)
  • Joint Lead Arranger/Co-Lead Manager – Graton Resort & Casino $850mm Sr. Sec. Credit Facilities and Sr. Sec. Notes (2012) (J)
  • Joint Lead Arranger – $315mm Green Valley Ranch Sr. Sec. Credit Facility (2011) (J)
  • Co-Lead Arranger – $430mm Aliante Sr. Credit Facility (2007) (B)
  • Joint Bookrunner – $400mm Sr. Notes (2006) (B)
  • Joint Bookrunner – $300mm Sr. Sub. Notes (2006) (B)
  • Co-Lead Arranger – $2.0bn Sr. Credit Facility (2005) (B)
  • Joint Bookrunner – $150mm Sr. Sub. Notes (2005) (B)
  • Joint Bookrunner – $200mm Sr. Sub. Notes (2005) (B)
  • Sole Lead Arranger – $1.0bn Sr. Credit Facility (2004) (B)
  • Joint Bookrunner – $450mm Sr. Notes (2004) (B)
  • Joint Bookrunner – $50mm Sr. Sub. Notes (Add-On) (2004) (B)
  • Joint Bookrunner – $350mm Sr. Sub. Notes (2004) (B)
  • Joint Bookrunner – $400mm Sr. Sub. Notes (2004) (B)
  • Co-Lead Arranger – $215mm Credit Facility (UAIC) (2003) (B)
  • Joint Bookrunner – $100mm Sr. Notes (2001) (B)
  • Joint Bookrunner – $300mm Sr. Notes (2001) (B)