The net proceeds to MEC from the sale of the additional notes, after the initial purchaser's commission and offering expenses are deducted, are about $48.5 million. MEC intends to use the net proceeds for general corporate purposes, including capital expenditures.
Magna Entertainment Corp. said June 24 it has completed its previously announced sale of an additional $50-million aggregate principal amount of 8.55% convertible subordinated notes due June 15, 2010.On June 2, MEC announced the closing of the sale of the initial $100 million aggregate principal amount of the notes. Accordingly, the aggregate size of the offering is $150 million.The notes will bear interest at 8.55% per year 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.