Drummond Woodsum Advises Gaming & Leisure Properties, Inc. in the First Ever REIT Financing in Indian Country

In September 2024, Gaming and Leisure Properties, Inc. (NASDAQ: GLPI) entered into a $110 million delayed draw term loan facility (the “Loan”) with the Ione Band of Miwok Indians (“Ione”) to provide Ione funding for a new casino development near Sacramento, California. Ione has an option at the maturity of the Loan to satisfy the loan obligations by converting the outstanding principal into a long-term lease with an initial term of twenty-five (25) years and a maximum term of forty-five (45) years (the “Long-Term Lease Option”). These agreements were entered into subsequent to receiving a declination letter from the National Indian Gaming Commission, which declination letter also covered the Long-Term Lease Option and associated documentation.

The Loan with the Long-Term Lease Option is the first ever real estate investment trust (REIT) financing in Indian Country, marking a significant innovation in tribal finance that promises to expand financing opportunities for tribes. In particular, the fifty (50) year duration of the Loan with the exercise of the Long-Term Lease Option opens up the possibility of long-term financing alternatives in Indian Country that can be deployed where standard bank financings or other types of shorter-term financings are less attractive.

The Drummond Woodsum team advising GLPI was led by Rob Gips and Andrew Sweeney. Brittany Michaud advised on corporate law matters. Corey Hinton and Esther Labrado advised on federal Indian law matters. Stacey Caulk advised on environmental law matters.