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GRAND CASINOS ACHIEVES FINANCIAL MILESTONE, RAISING $115 MILLION FOR MISSISSIPPI CASINOS; COMPLETES NOTES SALE

 MINNEAPOLIS, Feb. 2 /PRNewswire/ -- Grand Casinos, Inc. (NASDAQ-NMS: GRND) today announced that its wholly owned subsidiary, Grand Casinos Resorts, Inc., has raised $115 million to be used to finance, develop, construct, equip and open two dockside casinos on the Mississippi Gulf Coast.
 "With the completion of this financing, the company has achieved the goal it stated last August to have all financing secured to complete its Gulfport casino in May, 1993, and its Biloxi casino in October, 1993," said Tom Brosig, Chief Operating Officer. "Having previously received all requisite gaming licenses, we do not foresee any obstacles which will delay our scheduled Gulfport opening."
 The $115 million of 12-1/2 percent First Mortgage Notes have a seven year maturity and were sold with 1,300,000 detachable warrants to purchase the common stock of Grand Casinos, Inc. The per warrant exercise price is $19.00 and the warrants are exercisable for a period of five years. In addition, Grand Casinos, Inc. has agreed to register the notes and warrants within 60 days pursuant to the Securities Act.
 "The completion of this transaction represents a significant milestone for the company. The vote of confidence we have received from the capital markets answers any concerns about our ability to finance our future growth. With our investment bankers, Donaldson, Lufkin & Jenrette and Ladenburg, Thalmann & Co. Inc. as part of our team, we are confident that we will be able to continue our stated goal of becoming the premier operator of casinos in emerging gaming markets," Mr. Brosig stated.
 The First Mortgage Notes were placed by Donaldson, Lufkin & Jenrette and Ladenburg Thalmann. As part of the transaction, 700,000 warrants, not currently exercisable, were purchased by the placement agents.
 Grand Casinos, Inc. develops and manages casino gaming facilities for Indian tribes, and is currently developing non-Indian affiliated, company-owned gaming facilities. The Company's common stock is traded on the NASDAQ National Market System under the symbol GRND.
 -0- 2/2/93
 /CONTACT: Tom Brosig, Chief Operating Officer of Grand Casinos, Inc., 612-449-9092; Michael Rosenbaum or Audrey Lowe of FRB Chicago, 312-266-7800; or Sue Caulton, 415-986-1591, FRB San Francisco, all for Grand Casinos/
 (GRND)


CO: Grand Casinos, Inc. ST: Minnesota IN: CNO SU: FNC

SH -- NY081 -- 1966 02/02/93 14:24 EST
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Publication:PR Newswire
Date:Feb 2, 1993
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