Magna Entertainment gets project financing facilities from MI Developments

By Sara Rosenberg

New York, Dec. 9 - Magna Entertainment Corp. has received two 10-year project financing facilities, one in the amount of $115 million for the Gulfstream Park race track in Florida and one in the amount of $77 million for The Meadows race track and slot facility in Pennsylvania, according to a filing with the Securities and Exchange Commission Thursday. MI Developments Inc. (MID) provided the project financing.

The anticipated completion dates for Gulfstream is the first quarter of 2006 and The Meadows is the second quarter of 2006.

Prior to the completion dates, amounts outstanding under each facility will bear interest at a floating rate equal to 2.55% above MID's per annum notional cost of borrowing under its floating-rate credit facility, compounded monthly, a news release said.

After the completion date, amounts outstanding under each facility will bear interest at a fixed rate of 10.5% per annum, compounded semi-annually.

Payment of interest will be deferred until Jan. 1, 2008, at which time MID will receive monthly blended payments of principal and interest based on a 25-year amortization period.

The first draw of approximately $22.2 million under the Gulfstream project financing was expected to occur on Thursday.

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

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