Question-and-Answer Session
Operator
(Operator Instructions). And your first question comes from James Kayler. You may proceed.
James Kayler
Hey guys. How are you doing?
Lyle Berman
Good James.
James Kayler
Good. Can you – obviously, Pokagon is doing well and continues to ramp up and the occupancy is very high. Can you talk about future expansion plans and sort of what restraints you have, given the capital structure, when you could start on something?
Timothy Cope
Sure, I can speak to that. We are in discussions with the tribal leaders and tribal government there. We have enlisted the aid of outside development companies including our own development firms and we are looking at various alternatives there. I think one of the main things we have all come to agreement on additional rooms would be a plus for that property. In terms of the financial ability to do it, as you are well aware with the bond covenants in place, nothing can really take place until after the first 12 years of operations and certain covenant tests are met at that point in time?
Lyle Berman
Excuse me. 10, 12 months. You said 12 years.
Timothy Cope
I am sorry, 12 months. 12 years, we will have a big project by then, yeah 12 months. And then obviously after the covenant tests are met and then that will determine how much more additional debt can be incurred.
James Kayler
Okay. And the – is there any update on the Shingle Spring compact?
Timothy Cope
There is nothing new to report at this point in time. Tribal leadership and their advisors are in constant communication with the Governors' office, there is nothing new at this point to discuss.
James Kayler
Okay. And given that the openings coming up sooner, at what point do you have to decide on Class II or Class III machine?
Timothy Cope
Well, pretty soon. We have been meeting with gaming vendors on a regular basis. I think internally we are looking towards over the next three to four weeks, we are going to have to make a decision at least getting boxes in the manufacturing process and then that will give us enough lead time to make sure to, like I said the box themselves are being built and then the software, hopefully we can still make a decision on Class II versus Class III on a timely basis.
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