Magna Proceeding with Stock Offering
Updated: Friday, March 8, 2002 1:34 PM
Posted: Friday, March 8, 2002 1:29 PM
Magna Entertainment announced Friday it plans to proceed with an offering of 20 million shares of Class A stock.
The company first announced the offering on Oct. 26 but postponed because of poor market conditions. The Ontario-based racing conglomerate will file to sell 20 million of its class A subordinate voting shares in the United States and Canada. Magna officials said the offering contemplates an over-allotment option allowing underwriters to buy an additional 3 million shares.
The underwriting syndicate includes Bear Stearns & Co., BMO Nesbitt Burns, and CIBC World Markets Corp.
Magna Entertainment said it intends to use the proceeds for general corporate purposes, including debt repayment, capital expenditures, and the potential acquisition or development of additional racetracks and related operations. On Wednesday, Magna announced it had signed a $100 million deal to acquire Lone Star Park in Grand Prairie, Texas. Magna said it will pay $80 million and assumed about $19 million in lease obligations.
Penn National Gaming raised $96.1 million in a stock offering last month that sold 3.35 million shares for the company and another 1.25 million share for the Carlino Family Trust. Bear Stearns and Merrill Lynch were the underwriters.
As of 1:30 p.m. Friday, Magna stock was up 3 cents to $9.19 with moderate trading.
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