Magna Offers Additional $100 Million in Notes

Magna Entertainment Corp. will sell an additional $100 million worth of convertible notes at an annual interest rate of 8.55% through June 2 in hopes of gaining additional capital.

The Frank Stronach-led company anticipates net proceeds of $96.5 million with the sale. The funds will be used for "general corporate purposes, including capital expenditures," the company announced Tuesday after the markets closed.

The subordinated notes will fall due in 2010 and can be converted into the company's class-A voting stock beginning June 2, 2006.