MTR Gaming to bring $130 million seven-year notes

By Paul A. Harris

St. Louis, Feb. 26 - MTR Gaming Group, a Chester, West Virginia-based company that owns and operates gaming and lodging properties, announced it will bring $130 million of senior notes due 2010, in a Wednesday press release.

Market sources told Prospect News that the underwriter is Jefferies & Co.

No timing was heard on the deal, however the press release specified that it is expected to close in March.

When contacted by telephone on Wednesday a source from the company declined to comment but told Prospect News: "All of our executives are on the West Coast with Jefferies."

Proceeds from the deal will be used to repay the credit facility and for general corporate purposes, including the repurchase of up to $30 million of common stock.

The notes offering is also intended to provide the company the flexibility to pursue its plans to develop Presque Isle Downs in Erie, Pa. and acquire Scioto Downs in Columbus, Ohio, the press release specified.

The senior notes will rank senior to MTR's subordinated indebtedness and equally with its MTR's senior indebtedness, the release stated, adding that the notes will effectively rank junior to MTR's proposed third amended and restated revolving credit facility of between $40 million and $50 million in size.

The senior notes will be unconditionally guaranteed on a senior unsecured basis by all of MTR's current and future operating subsidiaries, the release added.

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