Ameristar
Casinos Obtains New Senior Credit Facility
Ameristar Casinos, Inc. today
announced that that it has replaced its existing
senior secured credit facility with a new $1.2
billion senior secured credit facility providing
significantly lower interest rate margins and
other more attractive terms. Deutsche Bank Securities
Inc. and Wells Fargo Bank, N.A. acted as joint
lead arrangers in connection with the new credit
facility. Deutsche Bank Trust Company Americas
is acting as administrative agent for a syndicate
of commercial banks and other institutional
lenders. The proceeds of the new credit facility
were used to repay all $362.2 million principal
amount of loans outstanding under the existing
senior credit facility and will be available
for Ameristar's general corporate and working
capital purposes, including the anticipated
redemption in February 2006 of all $380 million
outstanding principal amount of Ameristar's
10-3/4% senior subordinated notes due 2009.
The
new credit facility consists of a seven-year
$400 million term loan, which was fully borrowed
at closing, and a five-year $800 million revolving
loan facility, which was undrawn at closing.
Upon the satisfaction of certain conditions,
Ameristar will have the option to increase the
total amount available under the new credit
facility by up to an additional $400 million.
The
term loan bears interest at the London Interbank
Offered Rate (LIBOR) plus 150 basis points or
the base rate plus 50 basis points, at Ameristar's
option. Borrowings under the revolving loan
facility will bear interest initially at LIBOR
plus 100 basis points or the base rate plus
0 basis points. The LIBOR margin is subject
to adjustment between 75 and 175 basis points
and the base rate margin is subject to adjustment
between 0 and 75 basis points, in each case
depending on Ameristar's leverage ratio. The
commitment fee on the revolving loan facility
will range from 25 to 50 basis points, depending
on the leverage ratio.
Craig
H. Neilsen, Chairman and CEO, stated: "We
are extremely pleased to have obtained this
new credit facility from a distinguished group
of major banks and other institutional lenders.
We believe it is a testament to our strong financial
position and the excellent financial results
we have achieved over the past several years.
The new facility should provide us with the
capital resources necessary to fund our planned
growth and enable us to realize significant
interest expense savings compared to our prior
credit facility."
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