AmTote credit facilities refinanced
AURORA, Ontario -- (PRESS RELEASE) -- Magna Entertainment Corp. ("MEC") (NASDAQ: MECA) announced today that its wholly-owned subsidiary, AmTote International, Inc. ("AmTote") has completed a refinancing of its existing credit facilities, with SunTrust Bank ("SunTrust") as the new lender. The refinancing with SunTrust includes a $4.2 million term loan for the repayment of AmTote's existing debt outstanding under its Lasalle Bank term loan facilities plus a $3 million revolving credit facility to finance working capital needs and a $10 million term loan facility to finance up to 80% of eligible capital costs related to tote service contracts.
"We expect that the new credit facilities will provide increased flexibility and growth capacity for AmTote," said Blake Tohana, Executive Vice-President and Chief Financial Officer of MEC. "These credit facilities will allow AmTote to finance a substantial portion of the capital costs related to new tote service contacts, which includes the recent contract with Alberta's Northlands Park and the anticipated contract with Woodbine Entertainment Group."
AmTote, headquartered in Hunt Valley, Maryland, is an industry leader in real-time transaction processing, providing computerized pari-mutuel wagering services and equipment to both domestic and international customers.
MEC, North America's largest owner and operator of horse racetracks, based on revenue, acquires, 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®, 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(TM), 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.