Tribe to Benefit from Low Interest Rate
JAMUL, Calif., March 3, 2022 /PRNewswire/ — On February 10, 2022, the Jamul Indian Village Development Corporation (JIVDC), owner and operator of Jamul Casino®, closed on a refinance with a syndicate of commercial banks led by Western Alliance Bank. The other lenders were U.S. Bank, Nevada State Bank, KeyBank, First-Citizens Bank & Trust Co., and Columbia State Bank. JIVDC was able to retire all of its high interest pre-development debt and consolidate its financing in a single low interest loan. With this refinance, the JIVDC was able to pay off the entirety of its high interest rate loan with funds from the refinance and significantly reduce the interest rate on its debt, dramatically improving the financial future of the Jamul Indian Village.
“As a greenfield project, we were initially unable to obtain low-interest financing in the bank market. In only five short years, the Casino’s outstanding performance has allowed us to refinance all of our pre-development debt and set ourselves up for continued reinvestment and future success. The terms of this refinancing will allow us to pay off our debt quickly and focus on our long-term financial stability and new projects that will continue to provide benefits for the Tribe,” said JIVDC and Tribal Chairwoman Erica M. Pinto. “We are thankful for the partnership with Western Alliance Bank and appreciate their approach, flexibility and collaboration despite the challenges we faced last year during the COVID pandemic,” Chairwoman Pinto added.
“Western Alliance Bank, together with a syndicate of lenders, were able to assist Jamul Casino with the first phase of its refinance in 2021, despite the sizable difficulties brought about by the pandemic,” said Ashan Perera, managing director, Western Alliance Gaming. “The management team and the JIVDC’s disciplined approach made the 2022 final global refinance a reality. We are extremely honored and grateful for the partnership.”
This transaction is the second refinance the JIVDC has completed in just over a year. A previous refinance completed in 2021 took approximately a year to close after pandemic-related delays. However, due to the Casino’s exceptional performance and continued safe operations, the 2022 refinance was completed in just three (3) months with a significantly reduced interest rate. The Casino’s success is due in part to its:
- Strategic location in a well-populated area with favorable demographics
- Modern facility with state-of-the-art amenities
- Impressive player database growth with strong trends
- Best in-class management team, led by President and General Manager, Mary Cheeks
Ms. Cheeks states, “It’s very rewarding to see Jamul Casino’s success recognized by this team of lenders. It speaks to the vision of our leadership team, the dedication of our staff, and the loyalty of our guests.”
Procopio, Cory, Hargreaves & Savitch LLP (Procopio) provided legal counsel for the JIVDC, and FSA Investment Group acted as the JIVDC’s financial advisor. Procopio is an AMLaw 200 full-service business and litigation law firm, and FSA Investment Group is a financial advisory and investment firm.
About Jamul Indian Village of California (JIV or Tribe)
JIV is one of 13 federally recognized tribes that are part of the Kumeyaay Nation, with roots in east San Diego County since time immemorial. The Tribe utilizes revenue and resources from the Jamul Casino to fund educational opportunities, health care, and housing initiatives for its members, as well as finance projects that benefit the surrounding community. For more information about JIV, please visit jamulindianvillage.com.
About Jamul Indian Village Development Corporation
The Jamul Indian Village Development Corporation is a wholly owned subsidiary and instrumentality of the Jamul Indian Village, a federally recognized sovereign Indian nation and was established to advance the Tribe’s goals of self-sufficiency and self-reliance. The Development Corporation owns and operates Jamul Casino and pursues other economic development ventures on behalf of the Tribe.
About Jamul Casino
Opened in 2016, the Jamul Casino is located in Jamul, California, San Diego County, and is owned and operated by Jamul Indian Village Development Corporation (JIVDC), a wholly owned enterprise of the Tribe. The $430 million, award-winning casino features nearly 1,700 slot machines, 46 live table games, and a dedicated poker room and various restaurants, bars and lounges. Jamul Casino supports more than 1,000 permanent jobs in the region and is the closest casino to downtown San Diego which is the eighth-largest city in the United States by population. For more information about Jamul Casino, please visit www.jamulcasinosd.com.
See this release at PR Newswire.