Slot maker refinancing huge chunk of debt
RENO -- International Game Technology, the world's biggest maker of slot machines, today said it will buy back all its senior notes due in May 2009 and expects to write down as much as $90 million in the fourth quarter because of the move.
International Game will next month repurchase $569.6 million of 8.375 percent notes at the redemption price plus accrued interest, the company said in a statement.
Bank of America Corp., Wells Fargo & Co. and Bank of New York Co. are arranging a $1 billion credit facility for International Game, which is expected to include an $800 million five-year revolving credit line and a $200 million five-year term loan. Before completing the loan, the company can increase the financing by as much as $500 million.
After completion of the credit facility, International Game expects to reduce its pretax interest costs for the fourth quarter ending Sept. 30 by about $5 million to $7 million, and by about $24.0 million to $28.0 million in fiscal 2005.
Connecticut casinos won $141 million in May
UNCASVILLE, Conn. -- The state's two Indian-run casinos took in more than $141 million from slot machines in May, about even with their win one year ago, the casinos reported Tuesday.
The bigger slot take was reported at Mohegan Sun, operated by the Uncasville-based Mohegan Tribal Nation. Mohegan Sun took in $71.6 million from the slot machines in May and gave the state $17.9 million.
Foxwoods Resort Casino, owned by the Mashantucket Pequot Tribal Nation, took in $69.4 million from its slots in May and gave the state $17.3 million.
Gambling win up modestly
NEW ORLEANS -- Despite the addition of two new gambling venues over the past year, winnings for Louisiana's state-licensed casinos in May were up only about 3 percent from May 2003.
The 14 riverboat casinos, Harrah's New Orleans casino and three slot-machine casinos at racetracks won $187.4 million last month, compared with the $182.4 million lost by gamblers in May 2003, state police reported Monday.
LAKE CHARLES, La.:
Pinnacle Entertainment Corp. of Las Vegas plans to begin hiring up to 1,500 employees later this month for its riverboat casino resort expected to open next year in Lake Charles. The company said Tuesday that the casino will be called Lauberge du Lac -- Inn on the Lake. The $325 million project will include a gambling boat -- the last of 15 allowed in Louisiana under state law -- a 24-story hotel and a golf course.
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