Chatham Asset Management Sends Letter to Mohegan Tribal Gaming Authority

Chatham Will Not Provide Covenant Relief Absent Meaningful Principal Reduction of the 2024 Notes

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Jan 28, 2021, 11:48 ET

CHATHAM, N.J., Jan. 28, 2021 /PRNewswire/ -- Chatham Asset Management, LLC ("Chatham"), a private investment firm which manages funds that hold a substantial majority of the outstanding principal amount of the Mohegan Tribal Gaming Authority's (the "Company") 7.875% Senior Notes due 2024 (the "2024 Notes"), today sent a letter to Mario C. Kontomerkos, Chief Executive Officer of the Mohegan Tribal Gaming Authority (the "Company"), regarding recent attempts by the Company to amend the negative covenant protections afforded to holders of the 2024 Notes.

Chatham welcomes constructive dialogue with the Company to address its indebtedness. However, Chatham in no manner supports any amendments that reduce important protections to the Company's creditors absent a meaningful principal reduction of the 2024 Notes.

Accordingly, Chatham intends to hold the Company to account and will not provide any flexibility with respect to negative covenant protections afforded to holders of the 2024 Notes.

The full text of the letter follows:

January 28, 2021

Mario C. Kontomerkos
Chief Executive Officer

Mohegan Tribal Gaming Authority (d/b/a Mohegan Gaming & Entertainment)
One Mohegan Sun Boulevard
Uncasville, CT 06382

Re: Mohegan Tribal Gaming Authority (the "Company") Indebtedness

Dear Mr. Kontomerkos,

We are writing as the holder of a substantial majority of the outstanding principal amount of the Company's 7.875% Senior Notes due 2024 (the "2024 Notes"), which have been issued pursuant to the indenture dated as of October 14, 2016, with U.S. Bank National Association, as trustee (the "2024 Notes Indenture").

As you are aware, Company management has recently attempted to engage us in preliminary negotiations relating to certain desired amendments to the negative covenant protections set forth in the 2024 Notes Indenture. While we are generally supportive of the Company's recent efforts to refinance its overall debt obligations, we in no manner support any changes that reduce important protections to the Company's creditors absent a meaningful principal reduction of the 2024 Notes.

For this reason, as we have previously communicated to the Company and its representatives, we will not provide any flexibility with respect to negative covenants in the 2024 Notes Indenture. In particular, we view the negative covenants relating to restricted payments, permitted investments and tribal distributions as key protections that benefit all creditors of the Company, including holders of the 2024 Notes. We believe that permitted baskets relating to restricted payments and permitted investments have been exhausted. Going forward, we fully intend to hold the Company to account regarding these and other covenanted restrictions.

We welcome any dialogue in support of the above, and are hopeful that any outreach will result in productive negotiations.

Sincerely,

/s/

Anthony Melchiorre
Managing Member
Chatham Asset Management

SOURCE Chatham Asset Management, LLC