GARY, INDIANA – September 25, 2003 – Majestic Investor Holdings, LLC (the “Company”) and Majestic Investor Capital Corp. (“Capital” and together with the Company, the “Issuer”) today announced that it has received the requisite tenders and consents from holders of its 11.653% Senior Secured Notes due 2007 (the “Notes”). On August 26, 2003, the Issuer commenced a cash tender offer and consent solicitation relating to the Notes.
The consent date relating to the consent solicitation expired at 5:00 p.m., New York City time, on Thursday, September 25, 2003. As of 5:00 p.m., New York City time, on Thursday, September 25, 2003, $135,477,000 of the aggregate outstanding principal amount of Notes had been tendered in the offer to purchase and consent solicitation related to the Notes, which amounts to approximately 89.3% of the outstanding principal amount of the Notes.
The Issuer intends to enter into a supplemental indenture relating to the Notes that effectuates the proposed amendments described in the Offer to Purchase and Consent Solicitation Statement dated August 26, 2003, as amended (the “Statement”). The proposed amendments will not become operative, however, unless and until the Notes are accepted and paid for pursuant to the terms of the offer to purchase, as more fully described in the Statement. When the proposed amendments become operative, holders of all the Notes then outstanding will be bound thereby.
A consent payment of $30.00 per $1,000 principal amount of the Notes (the “Consent Payment”) will be paid only to holders of Notes who validly tendered such Notes on or prior to the expiration of the consent solicitation, if such Notes are accepted for payment. Holders whose valid tenders are received after the expiration of the consent solicitation, but prior to the expiration of the offer to purchase, which is 5:00 p.m., New York City time, on Monday, October 6, 2003, will receive the purchase price of $1,060.00 per $1,000 principal amount of the Notes, but will not be eligible to receive the Consent Payment.
This announcement is not an offer to purchase, a solicitation of an offer to purchase, or a solicitation of consents with respect to the Notes. The offer to purchase and consent solicitation relating to the Notes are made solely pursuant to the terms and subject to the conditions set forth in the Statement and the related Letter of Transmittal.
About The Majestic Star Casino, LLC and Majestic Investor Holdings, LLC
The Majestic Star Casino, LLC is a multi-jurisdictional gaming company that directly owns and operates one dockside gaming facility located in Gary, Indiana and, pursuant to a 2001 acquisition through its unrestricted subsidiary, Majestic Investor Holdings, LLC, owns and operates three Fitzgeralds brand casinos located in Tunica, Mississippi, Black Hawk, Colorado and downtown Las Vegas, Nevada. For more information about us, please visit our web sites at www.majesticstar.com or www.fitzgeralds.com.
The Majestic Star Casino, LLC and Majestic Investor Holdings, LLC make available free of charge their annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities and Exchange Commission. You may obtain a copy of such filings at www.sec.gov or from our applicable websites.
Forward-Looking Statements
This press release includes statements that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Words such as “believes”, “anticipates”, “estimates”, “plans”, “intends”, “expects”, “will” or “could” used in our press releases and reports filed with the Securities and Exchange Commission are intended to identify forward-looking statements. All forward-looking statements involve risks and uncertainties. Although we believe our expectations are based upon reasonable assumptions within the bounds of our current knowledge of our business and operations, there can be no assurances that actual results will not materially differ from expected results. We caution that these and similar statements included in this press release and in previously filed periodic reports are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. Such factors include, without limitation: the availability and adequacy of our cash flow to meet our requirements; our substantial indebtedness, debt service requirements and liquidity constraints; changes or developments in laws, regulations or taxes in the gaming industry, including increases in or new taxes imposed on gaming revenues and gaming devices; economic, demographic, business and other conditions in our local and regional markets; increased competition in existing markets or the opening of new gaming jurisdictions; competition in the gaming industry, including the availability and success of alternative gaming venues and other entertainment attractions; actions taken or omitted to be taken by third parties, including our manager as well as legislative, regulatory, judicial and other governmental authorities; a decline in the public acceptance of gaming; changes in personnel or compensation, including federal minimum wage requirements, or loss and/or retirement of key employees; finding of unsuitability by regulatory authorities with respect to us or our officers or key employees; our failure to obtain, delays in obtaining or the loss of any licenses, permits or approvals, including gaming and liquor licenses, or the limitation, conditioning, suspension or revocation of any such licenses, permits or approvals, or our failure to obtain an unconditional renewal of any such licenses, permits or approvals on a timely basis; the loss of any of our casino facilities due to casualty, weather, mechanical failure or any extended or extraordinary maintenance or inspection that may be required; other adverse conditions, such as adverse economic conditions, changes in general customer confidence or spending, increased transportation costs, travel concerns or weather-related factors, that may adversely affect the economy in general and/or the casino industry in particular; significant increases in fuel or transportation prices; changes in our business strategy, capital improvements or development plans; the ability to fund capital improvements and development needs from existing operations and from new financing; adverse results of significant litigation matters; and factors relating to the current state of world affairs and any further acts of terrorism or any other destabilizing events in the United States or elsewhere.
For more information on these and other factors, see our most recently filed Form 10-K. We caution readers not to place undue reliance on forward-looking statements, which speak only as of the date hereof. All subsequent written and oral forward-looking statements attributable to us are expressly qualified in their entirety by the cautionary statements and factors that may affect future results contained throughout this press release. We undertake no obligation to publicly release any revisions to such forward-looking statements to reflect events or circumstances after the date hereof.
SOURCE: Majestic Star Casino, LLC
