Great Canadian Gaming Corporation
TSX : GCD

Great Canadian Gaming Corporation

August 23, 2006 17:15 ET

Great Canadian Gaming Exercises Ontario Land Option

Secures $450 Million in Short Term Financing

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Aug. 23, 2006) - Great Canadian Gaming Corporation (TSX:GCD) (the "Company") announced today that it has exercised an option to purchase 70.35 acres of land adjacent to its Georgian Downs property in Innisfil, Ontario. The total consideration for the exercise of the option and the acquisition of the land is $28.9 million, which includes cash payments of approximately $3.0 million the Company made previously. The balance of the cash consideration is due October 24, 2006. The Company is considering ways to improve Georgian Downs, and the acquired property may be used for future development. Any future development of gaming is subject to Ontario Lottery and Gaming Corporation participation and approval.

In conjunction with the exercise of this option, the Company also announced today that it has secured a commitment from The Toronto-Dominion Bank for $450 million in short-term credit facilities (the "Bridge Commitment"). The Bridge Commitment is comprised of two tranches, each with a one-year term: a $250 million non-amortizing facility and a $200 million revolving facility.

Great Canadian intends to re-pay and replace its current debt facilities with this temporary Bridge Commitment. These debt facilities include $150 million of the Company's Series A Senior Secured Notes, $150 million of the Company's Series B Senior Secured Notes, and the Company's borrowings under its previous credit facility.

Great Canadian continues to review financing options, and will seek to replace the Bridge Commitment with a permanent, more flexible debt structure in the near-term. This permanent debt structure will allow the Company to both reduce its weighted average cost of capital and fund future development opportunities at existing operations.

ABOUT GREAT CANADIAN

Great Canadian is a multi-jurisdictional gaming and entertainment operator with facilities in British Columbia, Ontario, Nova Scotia and Washington State. Great Canadian operates fourteen casinos, five thoroughbred or standardbred racecourses, a community gaming centre, a hotel, a show theatre, and various food and beverage facilities. Further information is available on the Company's website, www.gcgaming.com.

DISCLAIMER

This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. Such differences may be caused by factors which include, but are not limited to, ongoing requirements to comply with financial covenants associated with credit facilities, limited terms of operational service agreements with gaming regulators, pending and proposed legislative or regulatory developments, competition from established competitors and new entrants in the gaming business, dependence on key personnel, no assurance that systems, procedures and controls will be adequate to support expanding operations, potential undisclosed liabilities and capital expenditures associated with acquisitions, negative connotations linked to the gaming industry, First Nations claims with respect to public lands on which we conduct our operations, impact of legal proceedings, impact of smoking bans, interest and exchange rate fluctuations, nonrealization of cost reductions and synergies, acceptance and demand for new products and services, fluctuations in operating results and general economic conditions. The Company cautions that this list of factors is not exhaustive. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, including in the "Risks Factors" section of the Company's Annual Information Form for fiscal 2005, or as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise.

Contact Information

  • Great Canadian Gaming Corporation - Investor Enquiries
    Mr. Thomas Bell
    Vice-President, Corporate Development & Investor Relations
    (604) 303-1000
    or
    Jaffoni & Collins Incorporated - Investor Enquiries
    Mr. Richard Land
    (212) 835-8500
    or
    Jaffoni & Collins Incorporated - Investor Enquiries
    Mr. David Jacoby
    (212) 835-8500
    GCD@jcir.com
    or
    Great Canadian Gaming Corporation - Media Enquiries
    Mr. Howard Blank
    Vice-President, Media & Entertainment
    (604) 303-1000
    (604) 279-8605 (FAX)
    www.gcgaming.com