SOURCE: Ameristar Casinos, Inc.

Ameristar Casinos, Inc.

November 17, 2009 13:28 ET

Ameristar Casinos Extends Maturity of Senior Revolving Loan Commitments

Now Has $150 Million of Revolving Commitments Expiring in November 2010 and $600 Million of Revolving Commitments Expiring in August 2012

LAS VEGAS, NV--(Marketwire - November 17, 2009) - Ameristar Casinos, Inc. (NASDAQ: ASCA) announced today that it has extended the maturity date of $600 million of revolving loan commitments under its senior secured credit facility from November 10, 2010 to August 10, 2012. Based on the Company's current leverage ratio, the new 2012 revolving loan tranche, under which $514.4 million of loans are currently outstanding, is priced 37.5 basis points higher than the preexisting 2010 revolving loan tranche. The $150 million of non-extending revolving commitments comprising the 2010 tranche, under which $128.6 million of loans are currently outstanding, remain currently priced at 287.5 basis points over LIBOR. In connection with obtaining the extensions, the Company paid the joint lead arrangers and extending lenders approximately $6.7 million in one-time fees.

"This 21-month extension of the maturity date of 80% of our revolving loan commitments, coupled with our issuance last May of $650 million of senior unsecured notes due in June 2014, provides us with the flexibility to continue to successfully operate our business and defer the complete refinancing of our bank credit facilities in these difficult economic times," said Gordon Kanofsky, Ameristar's Chief Executive Officer. "We are grateful for the support of our lenders and believe it reflects the confidence they have in our Company. We expect the Company will generate sufficient operating cash flow to retire the 2010 tranche of the revolving loan commitments upon their maturity," Kanofsky added.

Wells Fargo Securities, LLC, Banc of America Securities LLC, Deutsche Bank Securities Inc. and US Bank National Association acted as joint lead arrangers and joint book runners with respect to the extending revolving commitments.

Forward-Looking Information
This release contains certain forward-looking information that generally can be identified by the context of the statement or the use of forward-looking terminology, such as "believes," "estimates," "anticipates," "intends," "expects," "plans," "is confident that," "should" or words of similar meaning, with reference to Ameristar or our management. Similarly, statements that describe our future plans, objectives, strategies, financial results or position, operational expectations or goals are forward-looking statements. It is possible that our expectations may not be met due to various factors, many of which are beyond our control, and we therefore cannot give any assurance that such expectations will prove to be correct. For a discussion of relevant factors, risks and uncertainties that could materially affect our future results, attention is directed to "Item 1A. Risk Factors" and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2008, and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2009.

About Ameristar
Ameristar Casinos, Inc. is a leading Las Vegas-based gaming and entertainment company known for its premier properties characterized by innovative architecture, state-of-the-art casino floors and superior dining, lodging and entertainment offerings. Ameristar's focus on the total entertainment experience and the highest quality guest service has earned it leading positions in the markets in which it operates. Founded in 1954 in Jackpot, Nev., Ameristar has been a public company since November 1993. The Company has a portfolio of eight casinos in seven markets: Ameristar Casino Resort Spa St. Charles (greater St. Louis); Ameristar Casino Hotel East Chicago (Chicagoland area); Ameristar Casino Hotel Kansas City; Ameristar Casino Hotel Council Bluffs (Omaha, Neb. and southwestern Iowa); Ameristar Casino Hotel Vicksburg (Jackson, Miss. and Monroe, La.); Ameristar Casino Resort Spa Black Hawk (Denver metropolitan area); and Cactus Petes Resort Casino and The Horseshu Hotel and Casino in Jackpot, Nev. (Idaho and the Pacific Northwest).

Visit Ameristar Casinos' web site at www.ameristar.com (which shall not be deemed to be incorporated in or a part of this news release).

Contact Information

  • CONTACT:
    Tom Steinbauer
    Senior Vice President
    Chief Financial Officer
    Ameristar Casinos, Inc.
    (702) 567-7000