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 BAY SAINT LOUIS, Miss., Oct. 7 /PRNewswire/ -- Casino Magic Corp. (NASDAQ-NMS: CMAG) announced today the private placement with institutional investors of $135 million of First Mortgage Notes and warrants to purchase 810,000 shares of common stock. The notes will be issued by Casino Magic Finance Corp., a special purpose finance subsidiary, will be due in 2001, carry an interest rate of 11-1/2 percent and be secured by substantially all of the assets and the stock of the company's two Mississippi Gulf Coast casinos. The warrants will be exercisable for three years at $25 per share.
 Proceeds from the placement will be used to repay approximately $71 million of primarily short-term indebtedness incurred in property acquisition and in constructing and equiping the company's Mississippi Gulf Coast casinos. Proceeds will also be used for the evaluation and development of additional gaming opportunities. The company expects to receive the estimated $128,775,000 of net proceeds from the private placement on Oct. 14, 1993.
 Marlin F. Torguson, president and chief executive officer, said, "Over the past year, we have created a successful major gaming enterprise on the Mississippi Gulf Coast. In the first nine months of operation on the Gulf Coast through June 30, Casino Magic reported net income of $32.4 million on net revenues of $110.6 million. We have built a strong base business that provides us with a solid foundation for future growth. The completion of our debt financing will strengthen our balance sheet and provide funds for additional projects that support our business strategy.
 "Our business strategy remains focused on positioning and strengthening Casino Magic for long-term growth, and we are continuing to work toward identifing and evaluating additional casino sites in a wide variety of geographic locations."
 Casino Magic Corp., a Minnesota corporation, with principal offices in Bay Saint Louis, Miss., operates gaming casinos in Bay Saint Louis and Biloxi, Miss., and Deadwood, S.D.
 The common stock of Casino Magic Corp. is listed on the NASDAQ National Market System under the symbol CMAG.
 -0- 10/7/93
 /CONTACT: Doug Ewing of Swenson/Falker Associates, 612-371-0000, for Casino Magic; or Marlin Torguson of Casino Magic Corp., 601-467-9257/

CO: Casino Magic Corp. ST: Minnesota, Mississippi IN: CNO SU: ERP

AL -- MN005 -- 1252 10/07/93 09:21 EDT
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Publication:PR Newswire
Date:Oct 7, 1993

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