El Comandante Race Track to be operated by Codere, says Equus Gaming

By Jeff Pines

Washington, Dec. 20 - Equus Gaming Co. said Codere PR won an auction to operate the El Comandante Race Track and the video gaming system at the track. Equus owns El Comandante Capital Corp. and Housing Development Associates.

El Comandante Capital has $68 million in 11¾% first mortgage notes outstanding.

The annual revenues from the track are expected to be enough for Equus to refinance its notes and what it owes the commonwealth of Puerto Rico, Equus said.

The revenue stream will be guaranteed for 10 years or until the existing debt, or its replacement, is repaid, whichever occurs first, and will be backed up by an irrevocable bank letter of credit, Equus said.

Codere will jointly operate the track with El Comandante Management Co. LLC until the licenses are approved.

As part of the agreement, Codere PR will buy or lease state-of-the-art video gaming equipment, Equus said.

Codere will get options to by 10 million to 12 million class A Equus units at $2 per unit. As consideration for the options, Codere has paid Equus $500,000 and is required to pay it another $500,000 once its request for a 15-year gaming license to operate the track is approved.

The term sheet is subject to the approval of the U.S. Bankruptcy Court for the District of Delaware.

Equus did not disclose the amount of Codere's winning bid.

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