Magna Entertainment gets $125 million loan facility

By Sara Rosenberg

New York, Dec. 4 - Magna Entertainment Corp. closed on a new $125 million loan agreement, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

MI Developments Inc., the company's controlling shareholder, provided the deal that was completed on Dec. 1.

The loan agreement consists of a $50 million first tranche due March 31, 2009 and a $75 million second tranche due Dec. 31, 2011, with both tranches priced at Libor plus 1,200 basis points.

Proceeds from the first tranche will be used to fund the company's operations, and proceeds from the second tranche will be used to fund the company's Laurel Park video lottery terminals license application and related matters.

Magna is an Aurora, Ont.-based owner and operator of horse racetracks.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.