Midwest Gaming & Entertainment, LLC Announces Illinois Gaming Board Approval and Pricing of $175 Million of Senior Secured Notes

DES PLAINES, Ill., March 31 /PRNewswire/ -- Midwest Gaming & Entertainment, LLC announced today that its parent company, Midwest Gaming Borrower, LLC (the "Issuer"), and one of the Issuer's subsidiaries, Midwest Gaming Finance Corp. (together, "Midwest Gaming"), have priced an offering of $175 million in aggregate principal amount of 11.625% senior secured notes due 2016 (the "Notes"). The sale of the new notes is expected to be completed on or about April 9, 2010, subject to customary closing conditions.

The notes were priced at 98.941% of par, will be senior secured obligations of Midwest Gaming and will be guaranteed on a senior secured basis by Midwest Gaming & Entertainment, LLC and the other subsidiaries of the Issuer (except for Midwest Gaming Finance Corp., which is serving as co-issuer of the notes). Midwest Gaming intends to use the net proceeds of the offering to finance a portion of the design, development, equipping and construction a gaming facility in Des Plaines, Illinois (the "Des Plaines Casino").

The Illinois Gaming Board (the "IGB"), at its regularly scheduled meeting on March 30, 2010, approved the offering of the Notes. The IGB also approved the Issuer's contract with Pepper Construction to serve as the general contractor for the construction of the Des Plaines Casino.

The notes and the related guarantees will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States pursuant to Regulation S under the Securities Act. The notes and the related guarantees have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

This press release shall not constitute an offer to sell nor the solicitation of an offer to buy the notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any person to whom, such an offer, solicitation or sale is unlawful. Any offers of the notes will be made only by means of a private offering circular.

Forward-Looking Statements

This press release contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, whether or not the Issuers will offer the notes or consummate the offering, the anticipated terms of the notes and the offering, and the anticipated use of the proceeds of the offering. Important assumptions and other important factors that could cause actual results to differ materially from those expected.  Except to the extent required by applicable federal securities laws, neither the Issuers nor any of their affiliates undertake any obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.

About Midwest Gaming & Entertainment, LLC

Midwest Gaming has been awarded the exclusive right to apply for Illinois's only remaining gaming license and has received a finding of preliminary suitability from the IGB with respect to developing the Des Plaines Casino.  Midwest Gaming is a partnership between affiliates of Neil Bluhm and Clairvest Group Inc.  Collectively the partners bring a wide range of development and gaming experience to the project, having developed, constructed and managed casinos, luxury hotels, and other hospitality businesses around the world.  For more information, please visit www.midwestgaming.com.

SOURCE Midwest Gaming & Entertainment, LLC