Copa Casino of Mississippi is looking to refinance existing debt and develop the Gulfport Oasis Casino Resort. Copa had bought the Grand Casino Gulfport, the casino next door to Copa's Copa Casino Rick's Place, from Harrah's Entertainment in March 2005. Both properties were damaged during Hurricane Katrina.
UBS and Merrill Lynch will provide the financing, which consists of a five-year, $45 million revolver priced at LIBOR plus 2 3/4% and a six-year, $185 million term loan priced at LIBOR plus 3 1/4%. Standard & Poor's says the project began in the first quarter of this year, and that the first phase will open in September, followed by a second phase, which will open in March. Specifications of the different phases were not detailed. The ratings agency assigned a B rating and 3 recovery rating to the financing. A call to a Copa official was not returned by press time.