Century Casinos, Inc. Announces $27 million Credit Agreement from Bank of Montreal
COLORADO SPRINGS, Colo., May 29, 2012 /PRNewswire/ -- Century Casinos, Inc. (NASDAQ Capital Market® and Vienna Stock Exchange: CNTY) today announced that, through its subsidiaries Century Resorts Alberta Inc. and Century Casino Calgary Inc., the company has agreed to the terms of a CAD 28 million (approximately USD $27 million based on the exchange rate in effect on May 23, 2012) credit agreement with Bank of Montreal ("BMO"). The Company drew USD $4 million from the proceeds of the credit agreement and used USD $3 million of cash on hand to repay in full the outstanding balance of the Company's third party mortgage debt related to its Edmonton property ("Edmonton Mortgage").
Remaining proceeds from the credit agreement (approximately USD $23 million) are available to pursue the development or acquisition of new gaming opportunities as well as for general corporate purposes.
The BMO loan has a term of five years and is guaranteed by the Company. The floating interest rate on the first draw of $4 million is 3.75%. The Company incurred USD $0.2 million in prepayment penalties to settle the Edmonton Mortgage; however, the Company was able to reduce its overall interest rate on its outstanding debt from 7.0% to a floating 3.75%.
"We are very pleased with our new business relationship with BMO, one of the largest Canadian banks. This credit agreement is part of our strategy to increase long-term shareholder value through expansion and growth in domestic as well as international gaming markets. In addition, with the early repayment of the Edmonton Mortgage, the Company has significantly decreased its interest rate and outstanding debt," said Erwin Haitzmann and Peter Hoetzinger, Co Chief Executive Officers of Century Casinos.
About Century Casinos, Inc.:
Century Casinos, Inc. is an international casino entertainment company that owns and operates Century Casino & Hotels in Cripple Creek and Central City, Colorado, and in Edmonton, Alberta, Canada and the Century Casino in Calgary, Alberta, Canada. The Company also operates casinos aboard twelve luxury cruise vessels (Regatta, Nautica, Marina, Riviera, Mein Schiff 1, Mein Schiff 2, Wind Surf, Wind Star, Wind Spirit, Seven Seas Voyager, Seven Seas Mariner and Seven Seas Navigator). Through its Austrian subsidiary, Century Casinos Europe GmbH, the Company holds a 33.3% ownership interest in Casinos Poland Ltd., the owner and operator of seven casinos in Poland. The Company also manages the operations of the casino at the Radisson Aruba Resort, Casino & Spa in Aruba, Caribbean. Century Casinos, Inc. continues to pursue other international projects in various stages of development.
For more information about Century Casinos, visit our website at www.centurycasinos.com. Century Casinos' common stock trades on The NASDAQ Capital Market® and the Vienna Stock Exchange under the symbol CNTY.
This release may contain "forward-looking statements" within the meaning of Section 27A of the Security Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of the management of Century Casinos based on information currently available to management. Such forward-looking statements include, but are not limited to, statements regarding future results of operations, operating efficiencies, synergies and operational performance, economic improvements in 2012 and plans for our casinos and our Company. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the section entitled "Risk Factors" under Item 1A in our Annual Report on Form 10-K for the year ended December 31, 2011. Century Casinos disclaims any obligation to revise or update any forward-looking statement that may be made from time to time by it or on its behalf.
SOURCE Century Casinos, Inc.