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RIO COMPLETES $65 MILLION FINANCING

 LAS VEGAS, July 27 /PRNewswire/ -- Rio Hotel & Casino Inc. (NASDAQ-NMS: RIOH) ("Rio") announced today that it has successfully completed its bank refinancing. The new $65 million revolving credit facility replaces a $53 million revolving credit line facility and extends the term of the loan to March 1999. The bank lending group is led by Bank of America and First Interstate Bank and includes U.S. Bank, first Security of Idaho, Societe Generale and National Bank of Detroit.
 Rio Chairman of the Board Anthony A. Marnell II stated, "With this expanded credit facility, cash on hand and cash from continuing operations, we have sufficient capital for our recently commenced $25 million expansion of the Rio's East side and flexibility for continued physical growth as the demand for business dictates. We are pleased to have the confidence and support of our bank group."
 As a result of this refinancing, the Rio will have a one-time, non- cash, extraordinary expense charge in the third quarter ending Sept. 30, 1993, for unamortized loan costs associated with the original loan. The charge, net of taxes, will be approximately $330,000, or approximately $0.02 per share.
 The Rio, located on a 45-acre site in Las Vegas, is the country's only all-suite hotel/casino and presently consists of 424 suites and a 54,000-square-foot casino. The Rio is currently in the midst of two expansion projects. The first, a $37 million expansion, will add 437 more suites between Labor Day and November 1993. The second, a $25 million casino and public area expansion, will include a 25,000-square-foot expansion of the casino which will accommodate approximately 12 table games and up to 500 slot machines; a new 130-seat themed restaurant; a new 450-seat one-of-a-kind entertainment and restaurant complex; a 36,000-square-foot expansion of the Rio's beach pool area with a second swimming pool and additional recreation areas; and a 135,000-square-foot, two-level parking garage with parking spaces for approximately 434 vehicles. The second expansion will take place on the Rio's East side, will be completed in phases by April 1994 and will increase the Rio's total casino area to 79,000-square-feet.
 The Rio was designed to permit multiple expansions in accordance with a conceptual master plan and received zoning approval for 2,400 rooms.
 -0- 7/27/93
 /CONTACT: James A. Barrett, Jr., president of Rio, 702-252-7733/
 (RIOH)


CO: Rio Hotel & Casino Inc. ST: Nevada IN: CNO LEI SU: FNC

LM-JL -- SD001 -- 6032 07/27/93 08:03 EDT
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Publication:PR Newswire
Date:Jul 27, 1993
Words:413
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