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Ameristar Casinos, Inc. (NASDAQ: ASCA)
announced today that it has extended the maturity date of $600 million of
revolving loan commitments under its senior secured credit facility from
November 10, 2010 to August 10, 2012. Based on the Company's current
leverage ratio, the new 2012 revolving loan tranche, under which $514.4
million of loans are currently outstanding, is priced 37.5 basis points
higher than the preexisting 2010 revolving loan tranche. The $150 million
of non-extending revolving commitments comprising the 2010 tranche, under
which $128.6 million of loans are currently outstanding, remain currently
priced at 287.5 basis points over LIBOR. In connection with obtaining the
extensions, the Company paid the joint lead arrangers and extending lenders
approximately $6.7 million in one-time fees.
"This 21-month extension of the maturity date of 80% of our revolving loan
commitments, coupled with our issuance last May of $650 million of senior
unsecured notes due in June 2014, 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, Ameristar's Chief Executive Officer. "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," Kanofsky added.
Wells Fargo Securities, LLC, Banc of America Securities LLC, Deutsche Bank
Securities Inc. and US Bank National Association acted as joint lead
arrangers and joint book runners with respect to the extending revolving
commitments.
Forward-Looking Information
This release contains certain forward-looking information that generally
can be identified by the context of the statement or the use of
forward-looking terminology, such as "believes," "estimates,"
"anticipates," "intends," "expects," "plans," "is confident that," "should"
or words of similar meaning, with reference to Ameristar or our management.
Similarly, statements that describe our future plans, objectives,
strategies, financial results or position, operational expectations or
goals are forward-looking statements. It is possible that our expectations
may not be met due to various factors, many of which are beyond our
control, and we therefore cannot give any assurance that such expectations
will prove to be correct. For a discussion of relevant factors, risks and
uncertainties that could materially affect our future results, attention is
directed to "Item 1A. Risk Factors" and "Item 7. Management's Discussion
and Analysis of Financial Condition and Results of Operations" in our
Annual Report on Form
10-K for the year ended December 31, 2008, and "Item 2. Management's
Discussion and Analysis of Financial Condition and Results of Operations"
in our Quarterly Report on Form 10-Q for the quarter ended September 30,
2009.
About Ameristar
Ameristar Casinos, Inc. is a leading Las Vegas-based gaming and
entertainment company known for its premier properties characterized by
innovative architecture, state-of-the-art casino floors and superior
dining, lodging and entertainment offerings. Ameristar's focus on the total
entertainment experience and the highest quality guest service has earned
it leading positions in the markets in which it operates. Founded in 1954
in Jackpot, Nev., Ameristar has been a public company since November 1993.
The Company has a portfolio of eight casinos in seven markets: Ameristar
Casino Resort Spa St. Charles (greater St. Louis); Ameristar Casino Hotel
East Chicago (Chicagoland area); Ameristar Casino Hotel Kansas City;
Ameristar Casino Hotel Council Bluffs (Omaha, Neb. and southwestern Iowa);
Ameristar Casino Hotel Vicksburg (Jackson, Miss. and Monroe, La.);
Ameristar Casino Resort Spa Black Hawk (Denver metropolitan area); and
Cactus Petes Resort Casino and The Horseshu Hotel and Casino in Jackpot,
Nev. (Idaho and the Pacific Northwest).
Visit Ameristar Casinos' web site at www.ameristar.com (which shall not be
deemed to be incorporated in or a part of this news release).
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