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FOR RELEASE AT 9:00 A.M., THURSDAY, AUGUST 17, 2000
COMPANY CONTACT: EDSON R. ARNEAULT, PRESIDENT
(304) 387-8300
MTR GAMING GROUP COMPLETES
$60 MILLION AMENDED AND RESTATED
CREDIT FACILITY WITH
WELLS FARGO BANK
Chester, West Virginia, August 17, 2000: MTR Gaming Group, Inc.
(NASDAQ: MNTG) today announced that the Company and its operating subsidiaries
have completed an Amended and Restated Credit Agreement with a syndicate of
banks led by Wells Fargo Bank, National Association, as Agent Bank, and PNC
Bank, National Association, as Documentation Agent (the "Restated Facility").
The Restated Facility increases the line of credit from $38.5 million to $60
million. The Company will use additional borrowings to finance the ongoing
expansion of its Mountaineer Racetrack & Gaming Resort in Chester, West Virginia
and for general corporate purposes.
The Restated Facility has a term of five years, calls for payments of
interest only until the end of the term, continues to be secured by
substantially all of the assets of the Company and its operating subsidiaries,
and contains customary affirmative and negative covenants and events of default.
The Company may elect to borrow at the London Interbank Offered Rate (LIBOR),
plus a margin ranging from 1.5% to 2.5%. Alternatively, the Company may elect to
borrow at either the Prime Rate or Federal Funds Rate, plus a margin ranging
from 0.25% to 1.25%. The applicable margin added to the benchmark rates listed
above will depend upon the ratio of the Company's debt to EBITDA. The applicable
margin as of the closing was 2% over LIBOR, or
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.75% over the Prime Rate or Federal Funds Rate.
Commenting on the restatement of the credit facility, MTR Gaming Group
President and CEO, Edson R. (Ted) Arneault, said, "We are obviously pleased to
continue developing our relationship with Wells Fargo Bank and PNC Bank as well
as to form new relationships with the other members of the syndicate. By
eliminating the amortization payments ($6 million per year prior to the Restated
Facility), the loan package will enable us to accelerate our expansion at
Mountaineer, provide incentives in the form of reduced rates and fees as we
reduce our leverage ratio, and allow us to continue to grow our business."
Virginia Christenson, Vice President of Wells Fargo Bank, added, "We have been
continually impressed by the Company's accomplishments, value our relationship
with MTR, and welcome this opportunity to expand that relationship."
MTR Gaming Group, Inc., a West Virginia based corporation, through
subsidiaries, owns and operates the Mountaineer Racetrack & Gaming Resort in
Chester, West Virginia, the Ramada Inn and Speedway Casino in North Las Vegas,
and the Ramada Inn and Speakeasy Casino in Reno, Nevada. The Mountaineer complex
currently encompasses a thoroughbred racetrack, including off track betting and
export simulcasting, 1,859 video lottery terminals, a 101-room hotel, golf
course, fine dining and entertainment, the Speakeasy Gaming Saloon, and The
Harv.
EXCEPT FOR HISTORICAL INFORMATION, THIS PRESS RELEASE CONTAINS
FORWARD-LOOKING STATEMENTS CONCERNING, AMONG OTHER THINGS, INTEREST RATES,
FUTURE PLANS AND OPERATING RESULTS. SUCH STATEMENTS ARE BASED ON THE
COMPANY'S CURRENT PLANS AND EXPECTATIONS. ACTUAL RESULTS COULD DIFFER
MATERIALLY BASED UPON A NUMBER OF FACTORS, INCLUDING BUT NOT LIMITED TO THE
COMPANY'S ABILITY TO ACHIEVE AND MAINTAIN CERTAIN DEBT TO EBITDA RATIOS,
FLUCTUATIONS IN THE CREDIT MARKETS, WEATHER CONDITIONS, ADVERSE CHANGES IN
WEST VIRGINIA VIDEO LOTTERY LAWS OR THE RATES OF TAXATION OF VIDEO LOTTERY
OPERATIONS, LEGALIZATION OF NEW FORMS OF GAMING BY NEIGHBORING STATES, WHICH
WOULD LEAD TO INCREASED COMPETITION, COMPETITION, GENERAL ECONOMIC CONDITIONS
AFFECTING THE RESORT BUSINESS, DEPENDENCE UPON KEY PERSONNEL, MARKET
ACCEPTANCE OF THE COMPANY'S NEVADA PROPERTIES,MAINTAINING THE "GRANDFATHERED"
STATUS OF THE NEVADA PROPERTIES, TIMELY INSTALLATION OF COIN DROP SLOTS,
CONSTRUCTION DELAYS, AND OTHER FACTORS DESCRIBED IN THE COMPANY'S PERIODIC
REPORTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
