Monarch expands its credit line
Monarch Casino & Resort Inc. said last week it signed a new credit facility that allows it to borrow up to $60 million from a group of banks led by Wells Fargo.
Previously, Monarch’s borrowings under its credit line were capped at $50 million. The company owns Atlantis Casino Resort Spa in Reno.
John Farahi, the company’s co-chairman, chief executive officer and chief operating officer, noted the previous credit line was scheduled to come due in mid-April. The company used borrowings under the credit line to finance expansion of Atlantis and construction of a skybridge linking the property to the Reno-Sparks Convention Center.
The new credit line carries interest rates pegged at LIBOR the London Interbank offered rate plus 2 percent to 3.375 percent. Previously, the company was borrowing at LIBOR plus 1 percent to 1.75 percent. The credit line runs through Jan. 20, 2012.
Joining Wells Fargo in the syndicate lending to Monarch are Bank of America and Mutual of Omaha Bank.
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