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SANTA FE GAMING CORPORATION ANNOUNCES REPURCHASE OF $10.3 MILLION PIONEER FIRST MORTGAGE BONDS

LAS VEGAS, March 11 /PRNewswire/ -- Thomas K. Land, Senior Vice President and Chief Financial Officer, announced today that the Company has repurchased an aggregate of $10.3 million principal amount of Pioneer Finance Corp. 13 1/2% Guaranteed First Mortgage Bonds due 1998 with restricted cash at the Pioneer. The Company intends to retire the Notes in satisfaction of the December 1997 sinking fund obligation. As a result of the repurchase, interest expense is reduced by approximately $1.4 million annually through December 1997 and the remaining outstanding principal balance of $60 million is due December 1998. The Company expects to record a gain of approximately $2.0 million (pre-tax) related to this transaction in the quarter ending March 31, 1996.

"We have been evaluating our strategic options in the short period since closing the sale of the Hacienda and Sahara. This repurchase of $10.3 million in bonds along with the previously disclosed repurchase of $38.1 million long-term debt in January 1995 has significantly improved the capitalization of our existing properties. We expect to continue to consider available options and opportunities, including improvement of existing operations, further asset sales, further debt reduction and/or debt refinancing, in connection with potential development opportunities," said Thomas K. Land, Senior Vice President and Chief Financial Officer.

As previously announced, the Company changed its name from Sahara Gaming Corporation to Santa Fe Gaming Corporation (AMEX: SGM) at its annual meeting on February 20, 1996.

Santa Fe Gaming Corporation is a diversified gaming management company headquartered in Las Vegas. Santa Fe Gaming Corporation owns the Santa Fe Casino Hotel in northwest Las Vegas, and the Pioneer Hotel and Gambling Hall in Laughlin, Nevada. In addition, the Company holds several real estate parcels for possible development within or in the area surrounding Las Vegas, Nevada.
 -0- 3/11/96


/CONTACT: Thomas K. Land, Senior Vice-President and Chief Financial Officer of Santa Fe Gaming Corporation, 702-658-4340/

(SGM)

CO: Santa Fe Gaming Corp. ST: Nevada IN: CNO SU:

SS-BB -- LAM010 -- 0573 03/11/96 08:04 EST
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Publication:PR Newswire
Date:Mar 11, 1996
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