MTR GAMING GROUP SIGNS DEFINITIVE AGREEMENT
FOR SALE OF ITS RENO PROPERTY
CHESTER, WV - February 20, 2003
- MTR Gaming Group, Inc. (Nasdaq National Market:MNTG) today
announced that it signed a definitive
agreement for the sale of its hotel/casino property in
Reno, Nevada.
The total consideration of $2,950,000, which covers land,
improvements and furniture, fixtures and equipment (exclusive
of gaming equipment), approximates the current carrying value
of the assets on the Company's balance sheet. The agreement
calls for a down payment of $787,500, and the balance in the
form of a seven-year promissory note, secured by a first mortgage
on the property and guaranteed by the purchaser's principals.
Due diligence has been completed by the buyer and the closing
is scheduled to take place within 15 days, subject to customary
conditions.
MTR estimates that the sale of the Reno property will have
an annual positive impact of approximately $1.2 million on
the Company's EBITDA.
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.
About Scioto Downs
Scioto Downs owns and operates a harness horse racing facility
in Columbus, OH. Major racing programs conducted at Scioto’s
facilities include the Little Brown Jug Preview, the Scarlet
O’Hara, the Pink Bonnet, the Ohio Sires Stakes events
and Ohio Fair stakes events.
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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