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06.06.2003

USD 100 Million Note (“Bond”) Issue for Magna Entertainment Corp.

  • International convertible bond for general corporate purposes
  • MEC expected to open its first racetrack and casino in Europe in 2004 at Ebreichsdorf 

Bank Austria Creditanstalt (BA-CA) has arranged the placement of a USD 100 million Bond issued by Magna Entertainment Corp. (MEC). This was the first time for an Austrian bank to arrange an international convertible bond, whereby BA-CA acted as the Sole Lead Manager.  The transaction consisted of the private placement of a 7-year subordinated convertible Bond.  The net proceeds shall be used by MEC for general corporate purposes.

MEC is the entertainment arm of Magna International Inc., a worldwide leader in the supply of automotive components and systems.  MEC’s Class A Subordinate Voting Stock is listed on the Nasdaq National Market as well as on the Toronto Stock Exchange (TSX).  MEC last posted an annual turnover of USD 549 million (approx. EUR 472 million) in 2002 and has advanced to become the largest horse racetrack owner and operator in North America.  MEC owns, operates or manages 15 racetracks in North America and has significant real estate holdings, including many of the associated real properties.  MEC’s business activities include the operation of thoroughbred and standardbred racetracks and various related operations, including the ownership and operation of off-track betting facilities, a U.S. account wagering system and a 24-hour horse racing television network.

MEC is expected to begin operating its first racetrack in Europe in 2004, at Ebreichsdorf, Lower Austria.

Contact: Bank Austria Creditanstalt AG  Veronika Fischer-Rief
Tel. +43 (0)5 05 05 DW 82833; e-Mail veronika.fischer-rief@ba-ca.com

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Bond, the Class A Subordinate Voting Stock or any other securities. This offering is being made only to investors outside the United States.  The Bond and the shares of Class A Subordinate Voting Stock issuable upon conversion have not been registered under the United States or any state’s securities laws and may not be offered or sold in the United States without an applicable exemption from those laws.