MI Developments agrees to extend and increase bridge loan to Magna Entertainment

Wed Oct 15, 8:06 PM
The Canadian Press

By The Canadian Press

AURORA, Ont. - MI Developments Inc. (TSX:MIM.A, TSX:MIM.B) said Wednesday that it has agreed to increase and extend a bridge loan to Magna Entertainment Corp. and to extend the deadline for repayment under the financing provided for MEC's project at Gulfstream Park in Florida.

The maturity date of the bridge loan will be extended from Oct. 31 to Dec. 1, while the maximum commitment will be increased from US$110 million to US$125 million.

MEC will also be permitted to redraw the US$4.5 million that it repaid in July.

MID will also extend the deadline for repayment of at least US$100 million under the Gulfstream Park project financing facility from Oct. 31 to Dec. 1.

In connection with the increase to and extension of the bridge loan, MID will receive a fee of US$1.25 million and an extension fee of US$1.0 million under the Gulfstream Park loan.

The increase and extensions are conditional on MEC extending the maturity date of its US$40 million senior secured revolving credit facility with a Canadian chartered bank from Oct. 15 to no earlier than Nov. 17.