Boyd Gaming Completes New Bank Credit Facility

• 
  SAVE
• 
  SHARE
• 
  TEXT SIZE
• 
  PRINT
• 
  COMMENT
• 
  PDF

. October 14, 2008

MAY 24, 2007. Boyd Gaming Corporation (NYSE: BYD) today announced that it has completed its new $4 billion revolving credit facility. The new bank line replaces the Company's existing credit facility. Boyd Gaming will use the proceeds to finance development initiatives and other general corporate purposes, and will benefit from reduced interest costs and greater financial flexibility.

Drawn pricing on the facility will be based upon the Company's total leverage ratio and range between LIBOR +62.5 bps and 162.5 bps, with initial pricing set at LIBOR +100 bps. The joint lead arrangers for the credit facility are Bank of America, Citi, Deutsche Bank, JP Morgan, Merrill Lynch, Wachovia and Wells Fargo.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as "may," "will," "might," "expect," "believe," "anticipate," "could," "would," "estimate," "continue," "pursue," or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company's expectations, goals or intentions regarding the future, including but not limited to statements regarding the Company's proposed use of proceeds, the potential for greater financial flexibility and reduced interest costs and Echelon. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. In particular, the Company can provide no assurances regarding the actual use of proceeds, financial flexibility or reduced interest costs or the completion (including the anticipated opening date) or success of Echelon. Among the factors that could cause actual results to differ materially are the following: competition, litigation, changes in laws and regulations, including increased taxes, the availability and price of energy, economic, credit and capital market conditions and the effects of war, terrorist or similar activity. In addition, the Company's development projects, including Echelon, are subject to the many risks inherent in the construction of a new enterprise, including unanticipated design, construction, regulatory, environmental and operating problems and lack of demand for the Company's projects, as well as unanticipated delays and cost increases, shortages of materials, shortages of skilled labor or work stoppages, unforeseen construction scheduling, engineering, environmental, permitting, construction or geological problems, weather interference, floods, fires or other casualty losses. In addition, the Company's anticipated costs and construction periods for projects are based upon budgets, conceptual design documents and construction schedule estimates prepared by the Company in consultation with its architects and contractors. Many of these costs are estimated at inception of the project and can change over time as the project is built to completion.

The cost of any project may vary significantly from initial budget expectations, and the Company may have a limited amount of capital resources to fund cost overruns. If the Company cannot finance cost overruns on a timely basis, the completion of one or more projects may be delayed until adequate funding is available. The Company cannot assure you that any project will be completed, if at all, on time or within established budgets, or that any project will result in increased earnings to the Company. Significant delays, cost overruns, or failures of the Company's projects to achieve market acceptance could have a material adverse effect on the Company's business, financial condition and results of operations. Furthermore, the Company's projects may not help it compete with new or increased competition in its markets. Additional factors that could cause actual results to differ are discussed under the heading "Risk Factors" and in other sections of the Company's Form 10-K for the year ended December 31, 2006, which is on file with the SEC, and in the Company's other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.