Drummond Woodsum Advances Long-Term Financing Options for Tribal Gaming Developments

Drummond Woodsum recently advised Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) on a significant financing transaction supporting the development of Caesars Republic Sonoma County, a new integrated resort scheduled to open in 2027. The transaction reflects a growing shift in how large-scale tribal gaming and entertainment projects are financed and highlights the expanding role of real estate investment trusts in Indian Country.

Drummond Woodsum served as lead counsel to GLPI in connection with its $225 million commitment as the lead real estate financing partner for the project. GLPI’s participation is part of a broader $390 million debt financing for the River Rock Entertainment Authority (RREA), arranged by Citizens Capital Markets & Advisory. Caesars Republic Sonoma County will be developed on the site of the current River Rock Casino and is owned by RREA, a wholly owned instrumentality of the Dry Creek Rancheria Band of Pomo Indians. The project is located on the Dry Creek Rancheria in Geyserville, California.

Under the financing structure, GLPI will initially act as a lender through a delayed draw term loan of $180 million, priced at a fixed rate of 12.50%, and a $45 million term loan B with a current yield to maturity of 13.95%. Upon or prior to maturity of the six-year term loans, Dry Creek will lease the property to a GLPI affiliate for a 45-year term for an amount no less than $112.5 million, with GLPI subleasing the property back to a Dry Creek affiliate. Annual rent on the sublease will be based on a cap rate of 9.75%.

This transaction builds on the financing model GLPI pioneered in its 2024 transaction with the Ione Band of Miwok Indians, which introduced a long-term financing option that had not previously been available in Indian Country. While long-term financing through real estate investment trusts has long been a cornerstone of commercial entertainment and gaming resort development, GLPI’s recent transactions represent the first time these structures have been successfully deployed for tribal nations and their gaming facilities. In recognition of its significance, GLPI’s financing for the Ione Band of Miwok Indians received the 2024 Native American Finance Association Business Impact Deal of the Year Award.

The Drummond Woodsum team advising GLPI was led by Rob Gips and Andrew Sweeney, with Brittany Michaud advising on commercial law matters and Stacey Caulk advising on environmental law matters.