EXHIBIT 99
CONTACT: Ralph J. Vaclavik
President Casinos, Inc.
St. Louis, Missouri 63102
314-622-3018
FOR IMMEDIATE RELEASE
PRESIDENT CASINOS, INC.
ANNOUNCES DEBT RESTRUCTURING
ST. LOUIS, MISSOURI, December 1, 2000 -- President Casinos, Inc. (OTC:PREZ)
announced today that it had entered into an agreement with a majority of the
holders of its 13% Senior Notes due September 15, 2001, of which $75 million
are outstanding, and all of the holders of its 12% Notes due December 15,
2001, of which $25 million are outstanding.
The agreement provides for a restructuring of President's debt obligations
under the notes and the application of certain of the proceeds received by the
Company from the recently completed sale of the Company's Davenport, Iowa
operations. Pursuant to President's agreement with the noteholders, the
Company utilized approximately $2 million of the net proceeds from the sale to
pay the remaining balance of indebtedness on the President's Biloxi casino
vessel. In addition, approximately $43 million of the proceeds from the sale
of the Davenport, Iowa operations has been deposited with a securities
intermediary. Of this amount, $12.75 million will be used to pay missed
interest payments due March 15, 2000 and September 15, 2000 on the 12% and 13%
Notes; $25 million will be used to partially redeem the 12% and 13% Notes as
soon as practicable; and approximately $5.3 million will be used to pay
interest due March 14, 2001 on the 12% and 13% Notes.
As part of the restructuring, the maturity of the 12% Notes and the 13% Notes
would be extended from September 15, 2001 to September 15, 2003, if the
Company meets certain interest coverage ratios for the first half of calendar
2001. In lieu of the $25 million partial redemption of the 13% Notes
scheduled for September 15, 2000, the restructured 13% Notes would provide for
a sinking fund payment of $15 million due July 31, 2001, a date which would be
subject to extension based upon completion of the contemplated relocation of
the President's St. Louis casino operations on the "Admiral" and certain slot
machine improvements. The sinking fund payment is also subject to extension
or termination based upon satisfaction of certain performance based tests by
the President's St. Louis operations for the calendar quarter ending in June
2001, and each quarter thereafter on a rolling basis. In addition to the
forgoing, as part of the restructuring certain additional assets of President
would be pledged to secure the 13% Notes and President would issue to the
holders of the 12% Notes and the 13% Notes warrants to purchase up to 10% of
the fully diluted common stock of President at an exercise price of $2.625 per
share.
To consummate the restructuring, President will solicit consent of the
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noteholders to waive certain defaults and to amend the Indentures governing
the 12% Notes and the 13% Notes. President has until May 30, 2001 to cause
the restructuring to close and become effective unless such date is extended.
In the event the reorganization is not completed by means of consent
solicitation, the Company anticipates seeking a final order of a court
confirming the restructuring as part of a plan of reorganization.
Mr. John S. Aylsworth, President and Chief Operating Officer of President,
said, "This agreement marks a major step in the extensive efforts by the
Company to reorganize its financial situation and is anticipated to extend the
maturity of the Company's obligations under the two Indentures until September
15, 2003. We believe this period of time will be sufficient to enable us to
realize the full value inherent in our assets. Negotiations to restructure
our other indebtedness are continuing."
This release is not and shall not be deemed to be a solicitation for consents
to waivers and amendments to the Indentures. Acceptance of the restructuring
will not be solicited from any holder of the notes until it has received the
disclosures required under applicable law
President Casinos, Inc. owns and operates gaming facilities in Biloxi,
Mississippi and downtown St. Louis, Missouri near the base of the Gateway
Arch.
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