MTR GAMING GROUP TO PURSUE $130,000,000 PRIVATE
PLACEMENT
OF SENIOR NOTES
CHESTER, WV - February 26, 2003 - MTR Gaming Group, Inc. (Nasdaq
National Market:MNTG) today announced that it is pursuing the
issuance of $130,000,000 of Senior Notes through a private
placement.
The Company will use the proceeds of the proposed offering
of Senior Notes to repay the existing credit facility, pay
the costs of the offering, and for general corporate purposes,
including the repurchase of up to $30 million of the Company's
common stock in amounts and at times determined by the Company's
Board of Directors from time to time. The Senior Notes offering
is intended to provide the Company the flexibility to pursue
its plans to develop Presque Isle Downs in Erie, Pennsylvania,
acquire Scioto Downs in Columbus, Ohio, and repurchase common
stock. The Company expects the offering to be completed in
March.
The Senior Notes will rank senior in right of payment to any
of MTR's subordinated indebtedness and will rank equally with
any of MTR's senior indebtedness. The Senior Notes will effectively
rank junior to MTR's proposed third amended and restated revolving
credit facility in an amount between $40 million and $50 million
and any of MTR's other secured indebtedness, in each case to
the extent of collateral securing such indebtedness. The Senior
Notes will have a fixed rate of interest and require payments
of interest only for a term of seven years. The Senior Notes
will be unconditionally guaranteed on a senior unsecured basis
by all of MTR's current and future operating subsidiaries.
The Senior Notes will not be registered under the Securities
Act of 1933 and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of the Securities Act of 1933. It is anticipated
that MTR subsequently will file a registration statement under
the Securities Act of 1933 to effect an exchange offer of registered
Senior Notes.
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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