Partnership secures flexible asset-backed syndicated financing to build out Ohio Casinos
Rock Ohio Caesars LLC is a Midwest-based partnership developing first-class casinos in two of Ohio’s largest cities. In the fall of 2010, the company began searching for a creative source of low-cost financing to help it build out those casinos, which are slated to open in 2012 and 2013 in Cleveland and Cincinnati, respectively. The company hoped to secure funding it could draw down on an as-needed basis to minimize interest expense.
ROC Gaming was referred by a boutique investment advisory firm to Prudential Capital Group, which has a niche specialty in asset-backed FF&E (Fixtures, Fittings & Equipment) financing, both as a lender and syndicator, and is one of the leading lenders that can provide this economical type of financing for greenfield casinos.
In August 2011, ROC Gaming closed on a $125 million FF&E facility. Prudential Capital Group served as joint lead arranger, sole syndication agent and joint bookrunner, providing $40 million of the financing directly and syndicating the balance on a best-efforts basis to three other investors. The facility, which will be used primarily to purchase slot machines and other gaming-related equipment, allows ROC Gaming to make delayed draws over a period of 18 months from the date of closing.
Based on the ease, speed and certainty of completing this transaction, ROC Gaming chose Prudential Capital Group to help it realize its vision of bringing first-class gaming facilities to the cities of Cleveland and Cincinnati.