Magna Plans to Sell $50 million in Notes

Magna Entertainment Corp. hopes to raise net proceeds of $48.5 million for "general corporate purposes, including capital expenditures," through subordinated notes that will yield an annual interest rate of 7.25 percent, the company announced on Tuesday.

Magna plans to sell $50 million in notes and will be due Dec. 15, 2009. The notes will be convertible to Magna stock at $8.50 a share after Dec. 21, 2005. Stock in Magna, the largest racetrack operator in the United States, dropped 8.6 percent on Tuesday to $6.69 amid heavy trading.