Ameristar Casinos Extends Maturity of Senior Revolving Loan Commitments
November 17 2009 - 1:27PM
Marketwired
Ameristar Casinos, Inc. (NASDAQ: ASCA) announced today that it has
extended the maturity date of $600 million of revolving loan
commitments under its senior secured credit facility from November
10, 2010 to August 10, 2012. Based on the Company's current
leverage ratio, the new 2012 revolving loan tranche, under which
$514.4 million of loans are currently outstanding, is priced 37.5
basis points higher than the preexisting 2010 revolving loan
tranche. The $150 million of non-extending revolving commitments
comprising the 2010 tranche, under which $128.6 million of loans
are currently outstanding, remain currently priced at 287.5 basis
points over LIBOR. In connection with obtaining the extensions, the
Company paid the joint lead arrangers and extending lenders
approximately $6.7 million in one-time fees.
"This 21-month extension of the maturity date of 80% of our
revolving loan commitments, coupled with our issuance last May of
$650 million of senior unsecured notes due in June 2014, provides
us with the flexibility to continue to successfully operate our
business and defer the complete refinancing of our bank credit
facilities in these difficult economic times," said Gordon
Kanofsky, Ameristar's Chief Executive Officer. "We are grateful for
the support of our lenders and believe it reflects the confidence
they have in our Company. We expect the Company will generate
sufficient operating cash flow to retire the 2010 tranche of the
revolving loan commitments upon their maturity," Kanofsky
added.
Wells Fargo Securities, LLC, Banc of America Securities LLC,
Deutsche Bank Securities Inc. and US Bank National Association
acted as joint lead arrangers and joint book runners with respect
to the extending revolving commitments.
Forward-Looking Information This release
contains certain forward-looking information that generally can be
identified by the context of the statement or the use of
forward-looking terminology, such as "believes," "estimates,"
"anticipates," "intends," "expects," "plans," "is confident that,"
"should" or words of similar meaning, with reference to Ameristar
or our management. Similarly, statements that describe our future
plans, objectives, strategies, financial results or position,
operational expectations or goals are forward-looking statements.
It is possible that our expectations may not be met due to various
factors, many of which are beyond our control, and we therefore
cannot give any assurance that such expectations will prove to be
correct. For a discussion of relevant factors, risks and
uncertainties that could materially affect our future results,
attention is directed to "Item 1A. Risk Factors" and "Item 7.
Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our Annual Report on Form 10-K for the
year ended December 31, 2008, and "Item 2. Management's Discussion
and Analysis of Financial Condition and Results of Operations" in
our Quarterly Report on Form 10-Q for the quarter ended September
30, 2009.
About Ameristar Ameristar Casinos, Inc. is
a leading Las Vegas-based gaming and entertainment company known
for its premier properties characterized by innovative
architecture, state-of-the-art casino floors and superior dining,
lodging and entertainment offerings. Ameristar's focus on the total
entertainment experience and the highest quality guest service has
earned it leading positions in the markets in which it operates.
Founded in 1954 in Jackpot, Nev., Ameristar has been a public
company since November 1993. The Company has a portfolio of eight
casinos in seven markets: Ameristar Casino Resort Spa St. Charles
(greater St. Louis); Ameristar Casino Hotel East Chicago
(Chicagoland area); Ameristar Casino Hotel Kansas City; Ameristar
Casino Hotel Council Bluffs (Omaha, Neb. and southwestern Iowa);
Ameristar Casino Hotel Vicksburg (Jackson, Miss. and Monroe, La.);
Ameristar Casino Resort Spa Black Hawk (Denver metropolitan area);
and Cactus Petes Resort Casino and The Horseshu Hotel and Casino in
Jackpot, Nev. (Idaho and the Pacific Northwest).
Visit Ameristar Casinos' web site at www.ameristar.com (which
shall not be deemed to be incorporated in or a part of this news
release).
CONTACT: Tom Steinbauer Senior Vice President Chief Financial
Officer Ameristar Casinos, Inc. (702) 567-7000
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