Magna sells The Meadows

Magna Entertainment Corp. has announced it has reached an agreement to sell The Meadows and its off-track betting parlors in the western part of the state to Millennium Gaming and Oaktree Capital Management for $225 million. According to a press release issued by Magna, it will continue to manage racing operations at The Meadows on behalf of Millennium-Oaktree pursuant to a minimum five-year racing services agreement.



The announcement came the same day Magna reported third-quarter losses of $34.5 million, down from $50.3 million in the third quarter of 2004. Magna reported a net loss of $65.5 million for the first nine months of 2005, up from $54.6 million for the same period in 2004.



"We are extremely pleased to establish a relationship with Millennium and Oaktree, and we look forward to the possibility of working with them on other projects in the future," Magna president and CEO Tom Hodgson said. "The sale of The Meadows will allow MEC to significantly reduce our outstanding debt and strengthen our balance sheet, and will position us to further focus on our premier racing assets, and other gaming opportunities."



The sale would close after the parties receive approval from the Pennsylvania Harness Racing Commission, and The Meadows receives its "category 1" slots license from the state gaming board. The license will allow The Meadows to operate between 1,500 and 3,000 slot machines, with the possibility of an additional 2,000 machines.

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