Ameristar Casinos Extend Financial Commitments
Several financial institutions took part in extending revolving commitments to Ameristar Casinos, Inc (ASCA: 16.72 +0.66%). The gaming company announced today that they have extended the maturity date of $600 million worth of loans under its senior secured credit facility.
The revolving loans maturing on November 10, 2010 have been restructured for extension until August 10, 2012.
$514.4 million of the extended revolving loans are currently outstanding and have been priced 37.5 basis points higher than the preexisting loan tranche.
The $150 million of non-extending revolving commitments of which $128.6 million are currently outstanding remain priced at 287.5 basis points over LIBOR.
The extensions have cost the company $6.7 million in one time fees paid to joint lead arrangers and extending lenders.
“This 21-month extension 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, CEO “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.”
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