Magna Entertainment Corp. Announces Extension of Senior Secured Revolving Credit Facility
17 Novembro 2008 - 10:01PM
PR Newswire (US)
AURORA, ON, Nov. 17 /PRNewswire-FirstCall/ -- Magna Entertainment
Corp. ("MEC" or the "Company") (NASDAQ: MECA; TSX: MEC.A) today
announced that it has extended the maturity date of its $40 million
senior secured revolving credit facility (the "Senior Bank
Facility") with a Canadian chartered bank from November 17, 2008 to
November 28, 2008. MEC incurred a fee of $0.25 million in
connection with the extension of the Senior Bank Facility. MEC,
North America's largest owner and operator of horse racetracks,
based on revenue, develops, owns and operates horse racetracks and
related pari-mutuel wagering operations, including off-track
betting facilities. MEC also develops, owns and operates casinos in
conjunction with its racetracks where permitted by law. MEC owns
and operates AmTote International, Inc., a provider of totalisator
services to the pari-mutuel industry, XpressBet(R), a national
Internet and telephone account wagering system, as well as
MagnaBet(TM) internationally. Pursuant to joint ventures, MEC has a
fifty percent interest in HorseRacing TV(R), a 24-hour horse racing
television network, and TrackNet Media Group LLC, a content
management company formed for distribution of the full breadth of
MEC's horse racing content. FORWARD-LOOKING STATEMENTS This press
release contains "forward-looking statements" within the meaning of
applicable securities legislation, including Section 27A of the
United States Securities Act of 1933, as amended (the "Securities
Act"), and Section 21E of the United States Securities Exchange Act
of 1934, as amended (the "Exchange Act") and forward-looking
information as defined in the Securities Act (Ontario)
(collectively referred to as forward-looking statements). These
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995
and the Securities Act (Ontario) and include, among others,
statements regarding the anticipated maturity date of our Senior
Bank Facility and other matters that are not historical facts.
Forward-looking statements should not be read as guarantees of
future performance or results, and will not necessarily be accurate
indications of whether or the times at or by which such performance
or results will be achieved. Undue reliance should not be placed on
such statements. Forward-looking statements are based on
information available at the time and/or management's good faith
assumptions and analyses made in light of the Company's perception
of historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate
in the circumstances and are subject to known and unknown risks,
uncertainties and other unpredictable factors, many of which are
beyond the Company's control, that could cause actual events or
results to differ materially from such forward-looking statements.
Important factors that could cause actual results to differ
materially from the Company's forward-looking statements include,
but may not be limited to, material adverse changes in: general
economic conditions; the popularity of racing and other gaming
activities as recreational activities; the regulatory environment
affecting the horse racing and gaming industries; the Company's
ability to obtain or maintain government and other regulatory
approvals necessary or desirable to proceed with proposed real
estate developments; increased regulation affecting certain of the
Company's non-racetrack operations, such as broadcasting ventures;
and the Company's ability to develop, execute or finance the
Company's strategies and plans within expected timelines or
budgets. In drawing conclusions set out in our forward-looking
statements above, we have assumed, among other things, that we will
continue with our efforts to implement our September 12, 2007
adopted plan to eliminate the Company's debt, although not on the
originally contemplated time schedule, negotiate and close, on
acceptable terms, one or more core asset sale transactions, comply
with the terms of and/or obtain waivers or other concessions from
our lenders and refinance or repay on maturity our existing
financing arrangements (including the Senior Bank Facility and a
short-term bridge loan facility of up to $125.0 million with a
subsidiary of MEC's controlling shareholder, MI Developments Inc.),
possibly obtain additional financing on acceptable terms to fund
our ongoing operations and there will not be any material further
deterioration in general economic conditions or any further
significant decline in the popularity of horse racing and other
gaming activities beyond that which has already occurred in the
current economic downturn; nor any material adverse changes in
weather and other environmental conditions at our facilities, the
regulatory environment or our ability to develop, execute or
finance our strategies and plans as anticipated. Forward-looking
statements speak only as of the date the statements were made. We
assume no obligation to update forward-looking statements to
reflect actual results, changes in assumptions or changes in other
factors affecting forward-looking statements. If we update one or
more forward-looking statements, no inference should be drawn that
we will make additional updates with respect thereto or with
respect to other forward-looking statements. SOURCE Magna
Entertainment Corp. DATASOURCE: Magna Entertainment Corp. CONTACT:
Blake Tohana, Executive Vice-President and Chief Financial Officer,
Magna Entertainment Corp., 337 Magna Drive, Aurora, ON, L4G 7K1,
Tel: (905) 726-7493
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