Detroit’s downtown MotorCity Casino Hotel has received approval from the Michigan Gaming Control Board to refinance its debt and increase liquidity.
According to the presentation to the board made by casino President Bruce Dall, the company would transition from $15 million in revolving credit to $45 million, giving it a buffer should there be a hit to the business such as that caused earlier in 2020 by the Covid-19 shutdown. There are worries of another possible winter shutdown caused by the pandemic.
This would give the company the ability to survive for more than 18 months, said Dall, who added, “Quite frankly, if things were that bad, and it went 18 months, I think we’d have bigger issues or problems to deal with.”
The new financing would also include $570 million divided between a five-year loan and senior unsecured notes. The previous loan was for a $282 million loan and $200 million in senior unsecured notes.
