MTR Gaming on Track for Planned Merger

After merging with Eldorado HoldCo, the company will be renamed Eldorado Resorts.

Racetrack and casino owner MTR Gaming reports its planned merger with another casino owner is on schedule for the second half of 2014.

MTR Gaming announced plans in September to merge with Eldorado HoldCo, which owns casinos in Louisiana and Nevada. After the merger, the company will become a wholly owned subsidiary of Éclair Holdings Company, which will be renamed Eldorado Resorts.

MTR Gaming owns three racinos: Mountaineer Casino, Racetrack & Resort, Presque Isle Downs and Casino, and the Ohio Standardbred track Scioto Downs Racino.

The company reports it has cleared several hurdles in moving forward with the merger, including gaining consent from holders of the company's senior secured second lien notes. It has also secured a waiver from the company's existing credit facility, and gained initial approval from the Pennsylvania Gaming Control Board for the transfer of interest in Presque Isle Downs and Casino.

The company plans to pursue all needed regulatory approvals related to the merger in Louisiana, Nevada, Ohio, Pennsylvania, and West Virginia.

For 2013, MTR Gaming reports net revenues increased 2.2% to $497.8 million and adjusted earnings from continuing operations improved 2.2% to $98.7 million. But the company reported a net loss of $9.1 million attributed to $4.4 million in strategic transaction costs and about $3.5 million of income tax expense attributable to additional valuation allowances on deferred tax assets.

The company attributed reported declines in operating results at Mountaineer and Presque Isle to increased competition in Ohio. The company said Scioto Downs performed well in its first full year with added gaming.