Chukchansi Casino Expansion Plans Set for 2006

The Chukchansi Economic Development Authority (CEDA) successfully completed the refinancing of its outstanding debt, setting the stage for a proposed expansion of the premier Chukchansi Gold Resort & Casino, located 35 miles north of Fresno and 25 miles south of Yosemite National Park.

CEDA successfully closed the $310 million bond offering through two tranches: $200 million of 8% Senior Notes due in 2013, and $110 million of Floating Rate Senior Notes due in 2012. The Notes were rated BB- by Standard & Poor's and B2 by Moody's.

The Picayune Rancheria of the Chukchansi Indians will use the proceeds from the offering to refinance prior high-interest construction and vendor indebtedness incurred during the construction of Chukchansi Gold Resort & Casino.

The proceeds will also provide millions to fund the Casino's expansion in Madera County, which launches in early 2006. Chukchansi Gold Resort & Casino plans to add rooms and a spa facility to its gaming operation, which is expected to provide hundreds of additional jobs to the local economy during construction and after completion the following year.

"We were extremely pleased to be welcomed by the investment community as we explained how our Tribe plans to expand into the future," said Joyce Burel, Tribal Chairperson of the Picayune Rancheria of Chukchansi Indians. "We continue to make great progress in becoming financially independent and look forward to an exciting new chapter of development surrounding our Tribe's business."

Merrill Lynch acted as sole manager of the offering.