MTR may pursue $50 million credit facility increase

By Jennifer Chiou

New York, May 16 - MTR Gaming Group Inc. has initiated discussions pertaining to a possible $50 million increase to its credit facility in order to meet its capital requirements, according to a 10-K filing with the Securities and Exchange Commission.

The company said that it anticipates needed about $20 million of additional financing by late June, and, if the Hancock County, W. Va., referendum to permit table gaming at Mountaineer is successful, MTR added that it anticipates spending up to an additional $10 million in related capital expenditures.

MTR said that given its existing debt and needed financing, it believes the debt incurrence test provided by the indentures governing its senior unsecured notes and senior subordinated notes would permit it to borrow up to a total of $91.4 million of its existing $105 million credit facility, of which $82 million has been borrowed to date.

In order to borrow additional funds under the facility or other forms of financing, the company noted that it would require the prior consents of the holders of at least a majority of its outstanding senior unsecured notes and its senior subordinated notes.

MTR is a Chester, W. Va.-based company involved in gaming, horseracing and hotel properties.

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