Banco Santander is sounding out investors on a debt deal that would finance the development of a casino owned by Iowa Tribe of Oklahoma, according to people with knowledge of the matter.

Story continues below

The term loan could range between $200 million and $250 million, according to the initial terms, said the people, who asked not to be identified as the details are private. The proceeds would pay for the construction of a new casino resort located between Oklahoma City and Tulsa, they added.

Although pricing discussions are in the early stages, the loan may be offered as wide as 9 percentage points over the Secured Overnight Financing Rate, the people said. Conversations are preliminary and details of the financing may change, they added.