Magna Action Will Fund Phase Two of Slots Facility

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Edited Magna press releaseRacetrack operator Magna Entertainment Corp. announced Friday, Dec. 22, that it has amended two financing agreements.

Gulfstream Park Racing Association, Inc., owner and operator of Gulfstream Park, has agreed to amend its existing project financing facility with MID Islandi, sf. by adding a new tranche of up to $21.5 million (plus lender costs and capitalized interest) to fund the design and construction of phase two of the slots facility located on the first floor of the existing Gulfstream Park clubhouse building, as well as related capital expenditures and start-up costs, including the acquisition and installation of 700 slot machines.

"We are delighted to be able to build on the momentum created by the opening of our slots facility with 516 slot machines in November," said Gulfstream Park president and general manager, Paul Micucci. "By making an additional 700 slot machines available to Gulfstream's customers in the first quarter of 2007, we feel that we will continue the progress we have made toward our goal of becoming the premier entertainment facility in South Florida."

MEC also announced that it has amended its senior secured credit facility to extend the maturity date to March 31, 2007, to make an additional $15 million available, and to revise certain financial performance covenants. With the additional amount available, the aggregate commitment under the credit facility is now $40 million.

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