La. Admin. Code tit. 42 § III-2523

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-2523 - Notice of Debt Transaction; Board

A. Except as provided in §2525, whenever a licensee, casino operator, casino manager or an affiliate proposes to enter into a debt transaction, written notice shall be provided to the board no less than 20 calendar days prior to the proposed transaction. The notice shall be signed under oath by an authorized representative and shall include:

1. names and addresses of all parties to the transaction;

2. amount and source of funds;

3. nature and amount of security and collateral provided;

4. specific nature and purpose of the transaction; and

5. term sheet or executive summary of the transaction.

B. All debt transactions shall require prior written approval of the board unless one of the following apply.

1. The amount of the transaction does not exceed $2,500,000 and the lender(s) is a qualified institutional lender(s) as defined by applicable gaming statute.

2. The amount of the transaction does not exceed $1,000,000 and the lender(s) has previously been found suitable.

3. The amount of the transaction does not exceed $500,000.

4. The transaction is exempted from the prior written approval requirement pursuant to §2524 of this Chapter.

5. The transaction does not provide for guarantees, pledges or other security from the licensee, casino operator, casino manager or an affiliate.

6. The transaction qualifies under a shelf approval pursuant to §2525 of this Chapter.

7. The transaction modifies the terms of an existing debt transaction which was previously approved and the modification does not substantially alter such terms. Factors to be considered include, but are not limited to:

a. increases or decreases previously approved borrowing capability;

b. adds security or collateral;

c. loosens restrictions on financial covenants; or

d. provides more favorable terms considering current market conditions.

C. Except as otherwise provided in §2525 of this Chapter, the board shall determine whether the debt transaction is exempt from the prior approval requirement and shall notify the borrower of the determination.

D. In the event a determination is made that the debt transaction is not exempt pursuant to Subsection B the board shall issue a ruling approving or disapproving the transaction. If disapproved, the ruling shall be in writing and shall set forth reasons for the disapproval.

E. The board may require the debt transaction be subject to conditions which must be accepted by the parties prior to approval.

La. Admin. Code tit. 42, § III-2523

Promulgated by the Department of Public Safety and Corrections, Gaming Control Board, LR 36:1268 (June 2010).

AUTHORITY NOTE: Promulgated in accordance with R.S. 27:15 and R.S. 27:24.