$200 Million in Bonds Are Sold by Tribe
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Wall Street has snapped up $200 million in bonds sold by the Indian tribe that owns the River Rock Casino in the Alexander Valley.
Demand for the bonds was so strong that the investment bank underwriting the offering sold $10 million more than expected. The level of interest didn’t surprise financial analysts, who said tribal casinos are proving their profitability.
The private bond offering was handled by CIBC World Markets, which completed the sale of $200 million in bonds to institutional investors on Nov. 7. The tribe probably netted $190 million to $195 million after paying offering costs, analysts said.
The 768-member Dry Creek Rancheria Band of Pomo Indians, which owns the River Rock Casino near Geyserville, said it would use proceeds of the bond sale to repay most of the casino’s startup debt.
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