La. Admin. Code tit. 42 § III-2526

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

Section III-2526 - Limitation on Financing; Incurring Debt; Casino Operator

A. In accordance with section 13.6 of the casino operating contract and except as provided in §2523, §2524 and §2525 of these regulations, the casino operator or its financing affiliate may obtain debt only from a lender found suitable by the board and only after obtaining approval of the financing by the board. Board approval shall not be required for financing obtained from a lender previously found suitable by the board or from a lender who is a suitable lender as defined in the casino operating contract if:

1. principal amount of the debt incurred in the financing does not exceed the sum of:

a. debt retired with the proceeds of financing;

b. projected cost of capital improvements to be funded with the proceeds of the financing; and

c. customary transaction costs relating to the financing; or

2. pre-tax cash flow of the casino operator for the 12-month period ending on the last day of the calendar quarter preceding the calendar month in which the financing occurs is not less than 125 percent of the amount of annual interest payable with respect to secured debt incurred in the financing.

B. The casino operator, any holding company or intermediary company thereof, or the casino manager shall apply for prior approval of any proposed public offering of any ownership interest therein, and shall comply with all conditions imposed by the board.

La. Admin. Code tit. 42, § III-2526

Promulgated by the Department of Public Safety and Corrections, Gaming Control Board, LR 36:1269 (June 2010).

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