MI Developments inks loan amendments to buy time to explore Magna investment alternatives

By Caroline Salls

Pittsburgh, Aug. 13 - MI Developments Inc. and one of its wholly owned subsidiaries have agreed to amend a September 2007 bridge loan provided to Magna Entertainment Corp., as well as the project financing facilities provided in connection with Magna's racing and alternative gaming facilities at Gulfstream Park in Florida and Remington Park in Oklahoma.

According to a company news release, the amendments are designed to provide MI Developments with time to continue to explore a range of alternatives with respect to its Magna Entertainment investment.

These alternatives include examining potential amendments to a reorganization proposal received by the MI Developments board of directors on March 31 and evaluating to what extent MI might participate in a Magna recapitalization or restructuring.

Specifically, MI said the maturity of the bridge loan and the deadline for repayment of at least $100 million under the Gulfstream Park facility will be extended to Sept. 30 from Aug. 31.

During the extension period, any repayments made under either of the project financings will not be subject to a make-whole payment.

In connection with the extension of the bridge loan, the MI Developments lender will receive a $527,500 extension fee.

The amendments are subject to Magna Entertainment extending the maturity date of its $40 million senior secured revolving credit facility with a Canadian chartered bank to Sept. 15 from Aug. 15.

MI Developments said its board approved the bridge loan and project financing amendments after considering a recommendation from a special committee of independent directors.

MI Developments is an Aurora, Ont.-based real estate operating company engaged in the ownership, development, management, leasing and acquisition of industrial and commercial real estate properties located in North America and Europe.

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