River Rock Casino has reached a deal with creditors to restructure $200 million in debt due this month, casino officials said Wednesday.
The tribal gaming business in Alexander Valley will stay open and casino operations won't be affected by the restructuring, they said.
River Rock didn't reveal terms of the agreement, but said more than 60 percent of the casino's note holders agreed not to pursue default while the business restructures its debt.
The casino expects to offer a share exchange agreement by Nov. 18 and finish the restructuring in December, it said.
River Rock is owned by the Dry Creek Pomo Indian tribe and is located on its 93-acre reservation off Highway 128 east of Geyserville. The tribe is part of the restructuring deal, River Rock said.
The casino sold $200 million in "senior notes" to investors in 2003. The notes pay 9.75 percent interest and came due Nov. 1.
As part of the deal, River Rock will issue $27.6 million in new debt that will be used to retire some of the existing notes.
Last month, two rating agencies issued warnings on River Rock's debt, saying the business faced a high risk of default if it couldn't refinance by Tuesday's deadline.
On Oct. 19, River Rock said it was trying to raise $205 million from investors to pay off the old notes. The new notes would mature in 2018, River Rock said.
The casino expects to report $30.5 million to $31.5 million in net revenue for the quarter ending Sept. 30, along with $7.8 million to $8.3 million in income before distributions to the tribe, it said last month.
It has about $38 million in cash, casino officials said.
In a report last month, Moody's Investors Service said it expects River Rock to generate positive cash flows over the next 18 months.
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