MTR Gaming to pay additional consent fees to noteholders, must refinance notes within 16 months

By Angela McDaniels

Tacoma, Wash., May 12 - MTR Gaming Group, Inc. said it expects it will be required to pay consent fees in 2008 to holders of its senior subordinated notes in the amount of $5.00 per $1,000 principal amount of notes per quarter.

The consent fees are required if the company is unable to satisfy some quarterly financial ratios. They will be payable each quarter until the ratios are satisfied or the notes are no longer outstanding.

The company made the disclosure in its 10-Q report for the first quarter, which was filed with the Securities and Exchange Commission on Monday.

As previously reported in June 2007, MTR Gaming received consents from holders of its senior notes and senior subordinated notes to increase to $135 million from $85 million the permitted debt basket for debt incurred under its secured revolving credit agreement.

The company paid a consent fee of $7.50 per $1,000 principal amount of senior notes and $20.00 per $1,000 of senior subordinated notes.

At the time, MTR Gaming said senior subordinated noteholders would be entitled to additional fees in the coming quarters if the company did not satisfy certain financial ratios.

In its 10-Q report on Monday, the company also disclosed that it must refinance the senior unsecured notes with other unsecured debt by Oct. 1, 2009.

The company agreed to the requirement in connection with a shortening of the revolver's maturity date to March 31, 2010 from Sept. 27, 2011. The refinancing must be made on terms and conditions acceptable to MTR Gaming's senior secured lenders, the company noted.

MTR Gaming is a Chester, W.Va.-based company involved in gaming, horseracing and hotel properties.

© 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.