Ameristar to seek waiver of capital expenditures covenant; plans to prepay debt in 2003

By Sara Rosenberg

New York, Aug. 15 - Ameristar Casinos Inc. anticipates speaking with lenders about a waiver before year-end because it expects capital expenditures will exceed the amount currently permitted under its credit facility, which is approximately $73 million, according to a filing with the Securities and Exchange Commission.

Furthermore, the Las Vegas gaming company plans to prepay $13 million of outstanding debt under its senior credit facility during the remainder of 2003, in addition to the $15 million of required principal repayments that will be made.

During the six months ended June 30, total debt decreased $32 million to $766.5 million. The company repaid $32.3 million of long-term debt, including a $12.1 million prepayment of equipment financing notes, compared to $4.2 million of debt repayments in the same period in 2002. Ameristar also borrowed $85.7 million under its senior credit facility to fund capital expenditures.

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