The Ho-Chunk Nation of Wisconsin has acquired a $610 million loan from Cleveland-based KeyBanc Capital Markets to help fund its Beloit casino, hotel, and convention center development.
The transaction closed in October. KeyBanc Capital Markets is KeyBank’s investment banking division. KeyBank is one of the country’s 25 largest banks, with assets exceeding $185 billion.
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Ho-Chunk acquired a $305 million revolving credit facility, similar to a credit card, that allows it to borrow, repay, and re-borrow cash up to a certain maximum, as well as a $305 million delayed draw term loan. In such arrangement, Ho-Chunk will receive the funds in stages rather than all at once, allowing the Nation to pay interest only on what has been spent, avoiding upfront full-amount interest payments.
Ho-Chunk said the Beloit casino and resort project will cost $405 million for several years. The head of Ho-Chunk Nation, Jon Greendeer, stated openly that it would cost $500 million when construction eventually began in October 2024. KeyBanc anticipated that the project will cost $705 million in total when they announced the deal.
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