Century Casinos Receives Letter of Commitment for Funding of the Central City, Colorado Project
CENTRAL CITY, CO, August 17, 2005. Century Casinos, Inc. announced today that its subsidiary, CC Tollgate Casino, LLC, received a letter of commitment from Wells Fargo Gaming Capital, a funding unit of Wells Fargo Bank, National Association ("Wells Fargo"), to agent $35 million in financing, a portion of which will be funded by Wells Fargo. The commitment from Wells Fargo is conditional upon Wells Fargo successfully forming a syndicate of institutional lenders and/or accredited investors and upon satisfaction of all conditions in the Wells Fargo Commitment Letter. These funds, combined with the previously announced $4.5 million loan from a private lender will be used to fund the Central City, Colorado project, including, but not limited to, refinancing the existing loan from Colorado Business Bank, the construction of the property and purchase of gaming equipment. The remaining funds will be used to fund ongoing working capital needs of the Central City casino. The $4.5 million loan from the private lender matures on August 2, 2007 (two years), but can be repaid without any prepayment penalty after six months.
The financing from Wells Fargo will consist of a $32.5 million construction loan and a $2.5 million revolving line of credit. The $32.5 million construction loan, with a maturity not to exceed 12 months, will convert to a 60-month term loan at such time as the casino has been opened to the public. The $2.5 million revolving line of credit will mature in 72 months from the date of the loan's closing. The amount available under the term loan is subject to quarterly reductions. The interest rate on these loans will be the greater of 8.5% or the Prime Rate plus 4.0% and a service fee payable monthly. The loan is subject to a prepayment fee, various reporting requirements and financial covenants.
"We look forward to finalizing this funding commitment with Wells Fargo Bank for our casino project in Central City, Colorado," said Peter Hoetzinger, Co CEO and President of Century Casinos, Inc., "With the opening of the Central City parkway, Central City's casino revenues increased by 50% for the first six months of 2005, the highest growth rate of any Colorado casino location. Construction of the project is progressing and we are excited to be able to take advantage of the opportunities that this market provides," he continued.
The loan documents containing final terms and conditions will be subject to approval by the Company, Wells Fargo and all associated lenders.
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