JAMUL, CA – The Jamul Indian Village Development Corporation (JIVDC), owner and operator of Jamul Casino, has closed on a refinance with a syndicate of commercial banks led by Western Alliance Bank. Other lenders were U.S. Bank, Nevada State Bank, KeyBank, First-Citizens Bank & Trust Co., and Columbia State Bank. JIVDC was able to retire all of its high interest pre-development debt and consolidate its financing into a single low interest loan. With this refinance, the JIVDC was able to pay off the entirety of its high interest rate loan with funds from the refinance and significantly reduce the interest rate on its debt, dramatically improving the financial future of the Jamul Indian Village.
“As a greenfield project, we were initially unable to obtain low-interest financing in the bank market,” said JIVDC and Tribal Chairwoman Erica M. Pinto. “In only five short years, the casino’s outstanding performance has allowed us to refinance all of our pre-development debt and set ourselves up for continued reinvestment and future success. The terms of this refinancing will allow us to pay off our debt quickly and focus on our long-term financial stability and new projects that will continue to provide benefits for the tribe. We are thankful for the partnership with Western Alliance Bank and appreciate their approach, flexibility and collaboration despite the challenges we faced last year during the COVID pandemic.”
“Western Alliance Bank, together with a syndicate of lenders, were able to assist Jamul Casino with the first phase of its refinance in 2021, despite the sizable difficulties brought about by the pandemic,” said Ashan Perera, Managing Director, Western Alliance Gaming. “The management team and the JIVDC’s disciplined approach made the 2022 final global refinance a reality. We are extremely honored and grateful for the partnership.”
This transaction is the second refinance the JIVDC has completed in just over a year. A previous refinance completed in 2021 took approximately a year to close after pandemic-related delays. However, due to the casino’s exceptional performance and continued safe operations, the 2022 refinance was completed in just three months with a significantly reduced interest rate.
“It’s very rewarding to see Jamul Casino’s success recognized by this team of lenders,” said Mary Cheeks, President and General Manager of Jamul Casino. “It speaks to the vision of our leadership team, the dedication of our staff, and the loyalty of our guests.”
Procopio, Cory, Hargreaves & Savitch provided legal counsel for the JIVDC, and FSA Investment Group acted as the JIVDC’s financial advisor.