The Majestic Star Casino, LLC Announces Expiration and Final Results of its Invitation to Holders of Outstanding Senior Notes to Become Lenders in a New Term Loan and Related Consent Solicitation

May 29, 2015, 14:53 ET from The Majestic Star Casino, LLC

LAS VEGAS, May 29, 2015 /PRNewswire/ -- The Majestic Star Casino, LLC ("Majestic") announced today the expiration and final results of its previously announced Invitation (the "Invitation") to the holders of its 12.5% / 14.5% Senior Notes due 2016 (the "Notes") to become lenders in a new 12.5% / 14.5% First Lien Secured Term Loan Facility (the "New Term Loan") and the related solicitation of consents (the "Consent Solicitation") from the holders of the Notes to the adoption of proposed amendments to the Indenture (the "Indenture") and the Intercreditor and Lien Subordination Agreement (the "Intercreditor Agreement") relating to the Notes. Majestic made the Invitation and Consent Solicitation pursuant to the Information Memorandum and Consent Solicitation Statement, dated as of April 30, 2015, as supplemented by the Supplement No. 1 dated as of May 20, 2015 (the "Information Memorandum").

The Invitation and Consent Solicitation expired at 11:59 p.m., New York City time, on May 28, 2015 (the "Expiration Date"). Prior to the Expiration Date, Majestic received valid deliveries of approximately $109.2 million in aggregate principal amount of the Notes, representing commitments in the New Term Loan for the same aggregate principal amount. On May 29, 2015 (the "Closing Date"), Majestic accepted all such Notes and entered into the New Term Loan. Holders of Notes that participated in the Invitation received accrued and unpaid interest on the Notes up to, but not including, the Closing Date, in cash. After giving effect to the cancellation of Notes accepted in the Invitation, approximately $1.9 million in aggregate principal amount of the Notes remain outstanding.

Holders of Notes who made commitments to become lenders in the New Term Loan consented to the proposed amendments to the Indenture and to the Intercreditor Agreement, which amendments, among other things, eliminated most of the restrictive covenants and certain events of default contained in the Indenture, released all of the liens on the collateral securing the Notes under the Indenture and increased the amount of permitted obligations set forth in the Intercreditor Agreement. The proposed amendments became effective on the Closing Date. All accrued and unpaid interest on the Notes that remains outstanding, including accrued and unpaid interest up to and including the Closing Date and all future interest, will be paid in kind to the extent set forth in the Intercreditor Agreement. Accordingly, the holders of any Notes that remain outstanding following the Closing Date will receive their next interest payment via a payment-in-kind on or about June 1, 2015.

This release is for informational purposes only and is neither an offer to buy or sell nor a solicitation of an offer to buy or sell any securities of Majestic or any of its subsidiaries or parent entities.

About The Majestic Star Casino, LLC

The Majestic Star Casino, LLC, is a multi-jurisdictional gaming company that owns and operates: two adjacent dockside gaming facilities (Majestic Star and Majestic Star II) and a hotel located in Gary, Indiana, and a Fitzgeralds-branded casino and hotel located in Tunica, Mississippi (Fitz Tunica). Additional information about The Majestic Star Casino, LLC, and its casino properties can be found at the company's website,

Additional Information

Certain statements contained in this press release that are not historical facts are forward-looking statements. Such forward-looking statements, which reflect our current views of future events and financial performance, involve certain risks and uncertainties. Forward-looking statements include all statements that are not historical fact and can be identified by terms such as "may," "intend," "might," "will," "should," "could," "would," "anticipate," "expect," "believe," "estimate," "plan," "project," "predict," "potential," or the negative of these terms. These forward-looking statements represent our goals, beliefs, plans and expectations about our prospects for the future and other future events, such as our ability to generate sufficient working capital, our future results of operations and financial condition, expectations regarding the operation of our casino properties, and the sufficiency of our cash balances and cash generated from operating, investing, and financing activities for our future liquidity and capital resource needs. Although these forward-looking statements reflect our good-faith belief and reasonable judgment based on current information, these statements are qualified by important factors, many of which are beyond our control, that could cause our actual results to differ materially from those in the forward-looking statements, including, but not limited to the factors under the headings "Cautionary Statement Regarding Forward-Looking Statements" and "Risk Factors" in the Information Memorandum. Majestic assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events, new information or otherwise.


SOURCE The Majestic Star Casino, LLC