MTR Gaming Group Signs Definitive Agreement for Sale of Its Reno Property.
CHESTER, W.V.--(BUSINESS WIRE)--Feb. 20, 2003
MTR Gaming Group, Inc. (Nasdaq National Market:MNTG) today announced that it signed a definitive agreement for the sale of its hotel/casino property in Reno, Nevada.
The total consideration of $2,950,000, which covers land, improvements and furniture, fixtures and equipment (exclusive of gaming equipment), approximates the current carrying value of the assets on the Company's balance sheet. The agreement calls for a down payment of $787,500, and the balance in the form of a seven-year promissory note, secured by a first mortgage on the property and guaranteed by the purchaser's principals.
Due diligence has been completed by the buyer and the closing is scheduled to take place within 15 days, subject to customary conditions.
MTR estimates that the sale of the Reno property will have an annual positive impact of approximately $1.2 million on the Company's EBITDA.
About MTR Gaming Group
MTR Gaming Group, Inc. owns and operates the Mountaineer Race Track & Gaming Resort in Chester, West Virginia, which currently encompasses a thoroughbred racetrack with off-track betting and export simulcasting, 3,000 slot machines, 359 hotel rooms, golf course, spa & fitness center, theater and events center, convention center and fine dining and entertainment. The Company also operates the Ramada Inn and Speedway Casino in North Las Vegas. MTR recently obtained a license to build a new thoroughbred racetrack with parimutuel wagering in Erie, Pennsylvania (judicial review pending), and signed a Merger Agreement with Scioto Downs, Inc. for Scioto to become a wholly owned subsidiary of MTR (subject to various customary conditions as reported on Form 8-K filed with the Securities and Exchange Commission on December 24, 2002). Named to Forbes' Best 200 Small Companies List (#38), Business Week's Top 100 Hot Growth Companies List (#49), and Fortune's 100 Fastest Growing Companies List (#48), MTR is included on the Russell 2000(R) and Russell(R) 3000 Indexes. For more information, please visit www.mtrgaming.com.
Except for historical information, this press release contains forward-looking statements concerning, among other things, future plans and operating results, and specifically, the Company's sale of the Reno property. Such statements are based on the Company's current plans and expectations. Such statements are subject to a number of risks and uncertainties that could cause the statements made to be incorrect and/or for actual results to differ materially. Those risks and uncertainties include but are not limited to, satisfaction of customary closing conditions, the buyer's compliance with the terms of the purchase agreement and other factors described in the Company's periodic reports filed with the Securities and Exchange Commission. The Company does not intend to update publicly any forward-looking statements, except as may be required by law.