Century Casinos Announces $27 million Credit Agreement from Bank of Montreal
Century Casinos, Inc. (NASDAQ: 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. 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.
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%.
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