DETROIT—The General Retirement System of the City of Detroit and the Police and Fire Retirement System of the city of Detroit (Detroit Retirement Systems), announced that they, along with other existing investors including the gaming affiliates of Rivers Casino Chairman Neil Bluhm and Walton Street Capital, have participated in a successful recapitalization of the Rivers Casino located in Pittsburgh.
The Detroit Retirement Systems’ action protects the long-term interests of its members and retirees by reducing the casino’s secured debt by over 45 percent resulting in improved financial stability. It also allows the casino to begin table game operations, which will further enhance its financial performance and contribute to long-term revenue growth.
The recapitalization, which received the support of 100 percent of the casino’s senior lenders, includes the infusion of $108 million of new capital from the gaming affiliates of Bluhm and Walton Street Capital ($54 million), and the Detroit Retirement Systems ($27 million each).
The Detroit Retirement Systems have increased their participation from 10 percent up to an economic equivalent of 39.8 percent, subject to gaming authority approval.