Majestic Star and Majestic Investor unit again extend consent deadlines

New York, Sept. 17 - Majestic Star Casino LLC, (B2/B) and its Majestic Investor Holdings LLC (B2/B) unit said they had again extended the previously announced separate but concurrent consent solicitations for Majestic Star's 10 7/8% senior secured notes due 2006 and for Majestic Investor Holdings' 11.653% senior secured notes due 2007 to 5 p.m. ET on Sept. 18, subject to possible further extension, from the previous deadline for each of 5 p.m. ET on Sept. 16.

As of that previous deadline, $44.805 million of the 10 7/8% notes had been tendered by their holders and not subsequently withdrawn, unchanged from the amount of notes which had been tendered by Sept. 12, which had been the deadline for the offer before the company announced its extension on Sept. 15.

Also as of the previous (Sept. 16) deadline, $28.892 million of the 11.653% notes had been tendered and not withdrawn - down from the $30.692 million of notes which had been tendered by the old Sept. 12 deadline.

As previously announced, Majestic Star Casino, a Gary, Ind.-based gaming operator, announced a cash tender offer for its $130 million of outstanding 10 7/8% notes on Aug. 26, while its Majestic Investor Holdings subsidiary, along with Majestic Investor Capital Corp., concurrently announced a separate cash tender offer for Majestic Investor Holdings' $151.767 million of remaining outstanding 11.653% notes (out of the $152.6 million sold in November, 2001).

The companies initially set consent deadlines for their respective offers of 5 p.m. ET on Sept. 10, which were subsequently both extended, and each offer is set to expire at 5 p.m. ET on Sept. 24, subject to possible extension as well.

Majestic Star said it would offer $1,054.38 per $1,000 principal amount of the 10 7/8% notes, including a consent payment of $5 per $1,000 principal amount for holders who tender by the consent deadline. From the consent deadline up to the tender expiration deadline, holders will receive $1,049.38 per $1,000 principal amount. Majestic Star will also pay accrued interest up to but not including the date of payment.

The consent solicitation is to amend the indenture and release liens on the collateral securing the notes. The indenture amendment would eliminate substantially all the restrictive covenants and amend certain other provisions. A majority is needed to pass the changes.

Majestic Investor is meantime offering $1,050.00 per $1,000 principal amount of the 11.653% notes. The price includes a consent payment of $5 per $1,000 principal amount for holders who tender by the consent deadline. From then up to the tender expiration deadline, holders will receive $1,045.00 per $1,000 principal amount. Majestic Investor will also pay accrued interest up to but not including the date of payment.

The consent solicitation is to amend the indenture, terminate guarantees and release liens on the collateral securing the notes. Majestic Investor said the indenture amendment would eliminate substantially all the restrictive covenants and amend certain other provisions. A majority is needed to pass the changes and the consent of two thirds of the principal amount is outstanding is needed to release the liens.

For both offers, holders who tender will be required to deliver consents and consents can only be given on notes that are tendered.

Both offers are conditional on the receipt of consents and the completion of related financing transactions by Majestic Star.

Documentation is available from MacKenzie Partners, Inc. (call 800 322-2885), the information agent for the tender offers. The depositary is The Bank of New York.

Ball Corp. completes redemption of 8¼% notes

New York, Sept. 17 - Ball Corp. (B3/BB) announced that it had completed its previously announced redemption of its 8¼% senior subordinated notes due 2008. Ball said that it had used the proceeds from its $250 million Rule 144A add-on sale of new 6 7/8% senior notes due 2012, which took place on July 25.

Ball will record a third-quarter after-tax charge of approximately $10 million (17 cents per diluted share) for early extinguishment of the higher-interest debt.

Ball - which noted in its statement that the bonds which had been redeemed had been the company's "most expensive piece of debt" - said the refinancing at a lower interest rate and extension of the average maturity of its debt represents approximately $8 million in positive net present value after-tax cash flows to the company.

Prior to the debt extinguishment and the related charge, Ball said it expected second half 2003 earnings per diluted share to exceed first-half 2003 results of $1.84 per diluted share. It said that while that "continues to be the company's expectation," while holding out the possibility that "after taking into account the 17-cent debt extinguishment charge, second half results may be somewhat less than first half results."

As previously announced, Ball, a Broomfield, Colo.-based maker of metal and plastic packaging components for the food and beverage industries, said on July 24 that it would sell $200 million of new senior notes due 2012 in a Rule 144A private placement transaction (the add-on was ultimately upsized to $250 million), and use the net proceeds of the offering, together with other available funds, to redeem its $250 million of then- outstanding 8¼% notes.

Ball said in a separate 8-K filing with the Securities and Exchange Commission on July 24 that the redemption of the 8¼% notes would occur approximately 30 days after the pricing of the new issue.

Ball said in an S-4 registration statement that it filed with the SEC on Sept. 11, in which it proposed an offer to exchange new 6 7/8% notes registered for unrestricted public trading for the Rule 144A notes sold on July 25, that the redemption of the 8¼% notes had taken place as scheduled on Aug. 25.

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