AURORA, ON, Nov. 17 /PRNewswire-FirstCall/ - Magna Entertainment Corp.
("MEC" or the "Company") (NASDAQ: MECA; TSX: MEC.A) today announced that it
has extended the maturity date of its $40 million senior secured revolving
credit facility (the "Senior Bank Facility") with a Canadian chartered bank
from November 17, 2008 to November 28, 2008. MEC incurred a fee of $0.25
million in connection with the extension of the Senior Bank Facility.
MEC, North America's largest owner and operator of horse racetracks, based
on revenue, develops, owns and operates horse racetracks and related
pari-mutuel wagering operations, including off-track betting facilities. MEC
also develops, owns and operates casinos in conjunction with its racetracks
where permitted by law. MEC owns and operates AmTote International, Inc., a
provider of totalisator services to the pari-mutuel industry, XpressBet(R), a
national Internet and telephone account wagering system, as well as
MagnaBet(TM) internationally. Pursuant to joint ventures, MEC has a fifty
percent interest in HorseRacing TV(R), a 24-hour horse racing television
network, and TrackNet Media Group LLC, a content management company formed for
distribution of the full breadth of MEC's horse racing content.
FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the
meaning of applicable securities legislation, including Section 27A of the
United States Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the United States Securities Exchange Act of 1934, as amended
(the "Exchange Act") and forward-looking information as defined in the
Securities Act (Ontario) (collectively referred to as forward-looking
statements). These forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995 and
the Securities Act (Ontario) and include, among others, statements regarding
the anticipated maturity date of our Senior Bank Facility and other matters
that are not historical facts.
Forward-looking statements should not be read as guarantees of future
performance or results, and will not necessarily be accurate indications of
whether or the times at or by which such performance or results will be
achieved. Undue reliance should not be placed on such statements.
Forward-looking statements are based on information available at the time
and/or management's good faith assumptions and analyses made in light of the
Company's perception of historical trends, current conditions and expected
future developments, as well as other factors we believe are appropriate in
the circumstances and are subject to known and unknown risks, uncertainties
and other unpredictable factors, many of which are beyond the Company's
control, that could cause actual events or results to differ materially from
such forward-looking statements. Important factors that could cause actual
results to differ materially from the Company's forward-looking statements
include, but may not be limited to, material adverse changes in: general
economic conditions; the popularity of racing and other gaming activities as
recreational activities; the regulatory environment affecting the horse racing
and gaming industries; the Company's ability to obtain or maintain government
and other regulatory approvals necessary or desirable to proceed with proposed
real estate developments; increased regulation affecting certain of the
Company's non-racetrack operations, such as broadcasting ventures; and the
Company's ability to develop, execute or finance the Company's strategies and
plans within expected timelines or budgets. In drawing conclusions set out in
our forward-looking statements above, we have assumed, among other things,
that we will continue with our efforts to implement our September 12, 2007
adopted plan to eliminate the Company's debt, although not on the originally
contemplated time schedule, negotiate and close, on acceptable terms, one or
more core asset sale transactions, comply with the terms of and/or obtain
waivers or other concessions from our lenders and refinance or repay on
maturity our existing financing arrangements (including the Senior Bank
Facility and a short-term bridge loan facility of up to $125.0 million with a
subsidiary of MEC's controlling shareholder, MI Developments Inc.), possibly
obtain additional financing on acceptable terms to fund our ongoing operations
and there will not be any material further deterioration in general economic
conditions or any further significant decline in the popularity of horse
racing and other gaming activities beyond that which has already occurred in
the current economic downturn; nor any material adverse changes in weather and
other environmental conditions at our facilities, the regulatory environment
or our ability to develop, execute or finance our strategies and plans as
anticipated.
Forward-looking statements speak only as of the date the statements were
made. We assume no obligation to update forward-looking statements to reflect
actual results, changes in assumptions or changes in other factors affecting
forward-looking statements. If we update one or more forward-looking
statements, no inference should be drawn that we will make additional updates
with respect thereto or with respect to other forward-looking statements.
SOURCE Magna Entertainment Corp.
SOURCE Magna Entertainment Corp.
CONTACT: Blake Tohana, Executive Vice-President and Chief Financial
Officer, Magna Entertainment Corp., 337 Magna Drive, Aurora, ON, L4G 7K1, Tel:
(905) 726-7493
(MECA MEC.A.)
