MTR GAMING GROUP COMPLETES
$60 MILLION AMENDED AND RESTATED
CREDIT FACILITY WITH
WELLS FARGO BANK
CHESTER, WV - August 17, 2000: MTR Gaming Group, Inc. (NASDAQ:
MNTG) today announced that the Company and its operating subsidiaries
have completed an Amended and Restated Credit Agreement with
a syndicate of banks led by Wells Fargo Bank, National Association,
as Agent Bank, and PNC Bank, National Association, as Documentation
Agent (the "Restated Facility"). The Restated Facility
increases the line of credit from $38.5 million to $60 million.
The Company will use additional borrowings to finance the ongoing
expansion of its Mountaineer Casino Racetrack and Resort
in Chester, West Virginia and for general corporate purposes.
The Restated Facility has a term of five years, calls for
payments of interest only until the end of the term, continues
to be secured by substantially all of the assets of the Company
and its operating subsidiaries, and contains customary affirmative
and negative covenants and events of default. The Company may
elect to borrow at the London Interbank Offered Rate (LIBOR),
plus a margin ranging from 1.5% to 2.5%. Alternatively, the
Company may elect to borrow at either the Prime Rate or Federal
Funds Rate, plus a margin ranging from 0.25% to 1.25%. The
applicable margin added to the benchmark rates listed above
will depend upon the ratio of the Company's debt to EBITDA.
The applicable margin as of the closing was 2% over LIBOR,
or .75% over the Prime Rate or Federal Funds Rate.
Commenting on the restatement of the credit facility, MTR
Gaming Group President and CEO, Edson R. (Ted) Arneault, said, "We
are obviously pleased to continue developing our relationship
with Wells Fargo Bank and PNC Bank as well as to form new relationships
with the other members of the syndicate. By eliminating the
amortization payments ($6 million per year prior to the Restated
Facility), the loan package will enable us to accelerate our
expansion at Mountaineer, provide incentives in the form of
reduced rates and fees as we reduce our leverage ratio, and
allow us to continue to grow our business." Virginia Christenson,
Vice President of Wells Fargo Bank, added, "We have been
continually impressed by the Company's accomplishments, value
our relationship with MTR, and welcome this opportunity to
expand that relationship."
MTR Gaming Group, Inc., a West Virginia based corporation,
through subsidiaries, owns and operates the Mountaineer Casino Racetrack and Resort in Chester, West Virginia, the Ramada Inn and Speedway
Casino in North Las Vegas, and the Ramada Inn and Speakeasy
Casino in Reno, Nevada. The Mountaineer complex currently encompasses
a thoroughbred racetrack, including off track betting and export
simulcasting, 1,859 video lottery terminals, a 101-room hotel,
golf course, fine dining and entertainment, the Speakeasy Gaming
Saloon, and The Harv.
About MTR Gaming Group
MTR Gaming Group owns and operates the Mountaineer Casino Racetrack and Resort in Chester, West Virginia, which currently encompasses
a thoroughbred racetrack with off-track betting and export
simulcasting, 3,200 slot machines, 359 hotel rooms, golf course,
spa & fitness center, theater and events center, convention
center and fine dining and entertainment. The Company also
owns and operates the Ramada Inn and Speedway Casino in North
Las Vegas, and holds a license to build a new thoroughbred
racetrack with parimutuel wagering in Erie, Pennsylvania. MTR
is included on the Russell 2000® and Russell® 3000
Indexes. For more information, please visit www.mtrgaming.com.
Except for historical information, this
press release contains forward-looking statements concerning,
among other things, the acquisition of Scioto Downs, Inc.
Such statements are based on MTR’s current plans and
expectations. Such statements are subject to a number of
risks and uncertainties that could cause the statements made
to be incorrect and/or for actual results to differ materially.
Those risks and uncertainties are described in the Company’s
periodic reports filed with the Securities and Exchange Commission,
and with respect to the Scioto Downs acquisition are described
in the Merger Agreement, as amended, which is attached as
exhibits to the Company’s reports on Forms 8-K filed
December 24, 2002, March 5, 2003, and May 7, 2003. MTR’s
plans to build a racetrack in Erie, Pennsylvania remain subject
to the possibility of a legal challenge to the July 17, 2003
decision of the Pennsylvania State Horse Racing Commission
reinstating the license (which was originally granted in
late 2002) and the risks associated with land acquisition,development,
construction and integration of new operations. The Company
does not intend to update publicly any forward-looking statements,
except as may be required by law.
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