Magna Acquires $96.5 Million Through Notes Sale
Updated: Tuesday, June 3, 2003 10:26 AM
(Edited Magna Entertainment press release)
Posted: Monday, June 2, 2003 10:22 AM
Magna Entertainment Corp. has completed its sale of $100 million in convertible subordinated notes.
The net proceeds to MEC from the offering, after deducting the initial purchaser's commission and offering expenses, are approximately $96.5 million. MEC intends to use the net proceeds for general corporate purposes, including capital expenditures.
The aggregate principal amount of $100-million is due June 15, 2010. The Notes will bear interest at 8.55% per annum and will be convertible into shares of MEC's Class A Subordinate Voting Stock at a conversion price of $7.05 per share, subject to customary antidilution adjustments.
The Notes will be redeemable on or after June 2, 2006 at any time in whole or in part at MEC's option at a redemption price equal to the principal amount of the Notes plus accrued and unpaid interest to the date of redemption; provided that, in connection with any redemption occurring on or after June 2, 2006 and before June 2, 2008, the closing price of MEC's Class A Subordinate Voting Stock has exceeded 125% of the conversion price for at least 20 trading days in the 30 consecutive trading day period ending on the trading day prior to the mailing of the redemption notice.
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