Magna Entertainment prices $100 million 8.55% convertibles

New York, May 20 - Magna Entertainment Corp. said it priced $100 million of 8.55% convertible subordinated notes due June 15, 2010.

The notes carry a coupon of 8.55% and convert into Magna's class A subordinate voting stock at the rating of $7.05 per share - equivalent to 64% over the $4.30 closing price on Tuesday.

The Rule 144A offering has a $50 million greenshoe.

The notes will be callable from June 2, 2006 onwards subject to a 125% hurdle until June 2, 2008.

The Aurora, Ont. owner and operator of horse racetracks will use proceeds for general corporate purposes including capital expenditures.

Closing is scheduled for June 2.

© 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.