QUAPAW — CIT Group Inc., a provider of financing to small businesses and middle-market companies, has arranged $41.6 million in credit for development of a 150-room hotel tower for Downstream Casino Resort, operated by a subsidiary of the Quapaw Tribe.
CIT Group said it set up two senior secured credit facilities for Downstream Development Authority. The credit also includes refinancing of a loan for existing furniture, fixtures and equipment. Terms of the transaction were not disclosed.
“CIT's deep industry knowledge and experience was an important factor in our decision to choose CIT as lead arranger in these financings, which will offer us a great opportunity to enhance the environment for our casino and attract new customers,” said John Berrey, chairman of the Quapaw Tribe and chairman of Downstream Development Authority.
The financing was provided by CIT Bank, a wholly owned subsidiary of CIT. CIT Communications, Media & Entertainment was sole lead arranger and lead administrative agent on both financing.
“CIT has provided financing to the Native American and commercial gaming sectors for nearly 20 years,” said Steve Epperly, senior director of gaming finance and advising for CIT. “This transaction underscores our continued commitment to the Native American community.
Downstream Development Authority — so named in homage to the historical name by which the Quapaw were known by other tribes, “the downstream people” — “has been critical in developing the strong relationship between the tribe and the investment community,” Epperly said. “Downstream continues to perform well in tough market conditions, and we look forward to growing our relationship.”
In addition to Downstream Casino Resort in Quapaw, Downstreaam Development Authority operates Quapaw Casino in Miami, OK.