YONKERS, N.Y., April 26, 2011 /PRNewswire/ -- Yonkers Racing Corporation ("Yonkers") announced today that it has amended the terms of its previously announced solicitation of consents (the "Consent Solicitation") from holders of its 11-3/8% Senior Secured Notes due 2016 (the "Notes").
After discussions with certain of the holders of the Notes regarding the terms of the Consent Solicitation, the consent fee payable in the Consent Solicitation has been increased to $12.50 for each $1,000 principal amount of Notes for which a holder of Notes consents in accordance with the terms of the Consent Solicitation
In addition, Yonkers is offering to eliminate its right to redeem up to $22.5 million in principal amount of the Notes in each twelve-month period ending on July 14 of 2012 and 2013 at a redemption price equal to 103% of the Notes redeemed (the "Redemption Right"). Yonkers has previously exercised such right for the twelve month period ending July 14, 2011. Yonkers believes that the elimination of such right is a benefit to the holders of the Notes and can be effected without the consent of any holder of the Notes. Accordingly, if Yonkers receives valid and unrevoked consents from holders of not less than a majority in aggregate principal amount of the Notes (other than any Notes owned by Yonkers or any of its affiliates) and the proposed amendments (the "Proposed Amendments") to the indenture governing the Notes, the related collateral trust agreement securing the Notes and the other related documents become operative, in each case, in accordance with the terms of the Consent Solicitation, the supplemental indenture which will contain the Proposed Amendments will also eliminate the Redemption Right.
The Consent Solicitation will expire at 5:00 p.m., New York City time, on April 28, 2011, unless otherwise extended.
The Consent Solicitation is being made pursuant to a Consent Solicitation Statement, dated April 20, 2011, as amended by a Supplement to Consent Solicitation Statement, dated April 26, 2011 (the "Consent Solicitation Statement"), and a related Letter of Consent. Credit Suisse Securities (USA) LLC and BofA Merrill Lynch are serving as solicitation agents and D.F. King & Co., Inc. is serving as tabulation agent in connection with the Consent Solicitation. Requests for assistance in delivering consents or for additional copies of the Consent Solicitation Statement and/or Letter of Consent should be directed to D.F. King & Co., Inc. at (212) 493-6996 (banks and brokers) or (800) 487-4870 (toll-free). The Consent Solicitation Statement and the related Letter of Consent also have been posted to Yonkers' Intralinks website (www.intralinks.com).
This press release is not an offer to sell the Notes or any other securities.
Yonkers Raceway, one of the preeminent horse racing facilities in North America, was founded in 1899 as the Empire City Trotting Club, and has been owned and operated since 1972 by the Rooney family of Pittsburgh, Pennsylvania. Yonkers' facility is located on 97 acres in Yonkers, New York, which is approximately 15 miles from New York City's Times Square. Yonkers' current operations are comprised of a gaming and entertainment facility which includes the Empire City Casino – a 140,000 square-foot casino featuring 5,310 gaming positions including 5,270 slot machines and 40 electronic table games (introduced in December 2010), and Yonkers Raceway – a harness race track featuring pari-mutuel wagering on live and simulcast horse races.
Forward Looking Statements
Some statements in this press release are known as "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements about Yonkers' plans, objectives, expectations and intentions and other statements contained in this press release that are not historical facts. When used in this press release, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions are generally intended to identify forward-looking statements. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements, including Yonkers' plans, objectives, expectations and intentions and other factors. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to Yonkers and speak only as of the date of this press release. Additional factors that could cause actual results to differ materially from those described in the forward looking statements are set forth in the section entitled "Risk Factors" in Yonkers' annual report for the fiscal year ended December 31, 2010, which was posted on Yonkers' Intralinks website in accordance with the indenture governing the Notes. Yonkers undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made on related subjects in subsequent periodic reports filed with the U.S. Bank National Association, as trustee under the indenture governing the Notes, or posted on the Intralinks website.
Yonkers currently files reports and other information with the trustee and post current, annual, and quarterly reports to the Intralinks website (www.intralinks.com). Reports and other information can only be accessed via password. If you need assistance in obtaining access to the information contained on the Intralinks website, please contact Joel Daum, Chief Financial Officer of Yonkers, at (914) 457-2481 or JDaum@YonkersRaceway.com.
SOURCE Yonkers Racing Corporation