Wednesday, September 17, 2008

another casino financing deal bites the dust

Can't keep up with the second order financial news these days... News just out that Credit Suisse is not going forward to finance the proposed casino that is slated for Lawrence County. Whether they can find alternative financing these days will be a challenge no doubt.

So two points: the issue is not so much whether other financing can be found, the question is at what interest rate. Interest rates have actually come down of late, but if this is deemed a riskier project than in the past and the developers need to pay a hefty premium, can it be a viable project in the future.and two, if the Lawrence County casino never happens, or does not happen soon, does that work out to a higher value for the Pittsburgh casino which would then be expected to capture some more revenue.

That and you just have to wonder... even if Don Barden had found a way to keep the Majestic Star financed earlier in the year, financing which for a while was going to include Credit Suisse... would whatever deal he came up still be in place today given all that is going on in financial markets.


Post a Comment

<< Home