Edited press release
Magna Entertainment Corp. has amended its project financing deal with MID Islandi to add bonds of up to $27.75 million to fund design and construction of a slot-machine facility at Gulfstream Park in South Florida.
The money will also be used for related capital expenditures and start-up costs, including the purchase and installation of 500 slot machines.
"This new financing will fund the installation of 500 slot machines at Gulfstream Park, which will enhance Gulfstream's capability as a year-round entertainment destination center," MEC chief financial offer Blake Tohana said. "We expect to open the Gulfstream Park slots facility in October of this year."
The new financing has a five-year term and, consistent with the existing deal, bears interest at a fixed rate of 10.5% per annum, compounded semi-annually. Prior to Jan. 1, 2007, interest on the new bonds will be capitalized. The financing deal will be further amended to introduce a mandatory annual cash-flow sweep of not less than 75% of Gulfstream's total excess cash flow, after permitted capital expenditures and debt service, to be used to repay the additional principal amount being made available under the amended plan.
MID Islandi is a financing partnership formed in Iceland.