06/16/2003 11:00PM

Magna raises more cash


Magna Entertainment Corp., the largest owner and operator of racetracks in the U.S., will sell an additional $50 million in notes, the company announced Monday.

Magna said that it expects to raise $48.5 million in cash after expenses from the offering, which is expected to close on June 24. The cash will be used for "general corporate purposes and capital expenditures," the company said in a statement.

Magna stock closed at $4.74 on Tuesday, down 1.25 percent for the day.

The offering is the second this summer for Magna. On June 2, Magna closed a deal to sell $100 million in notes, raising approximately $96.5 million. Both offerings bear interest at 8.55 percent annually and can be converted into stock.

The buyer of the initial $100 million offering is also the buyer of the new offering, Magna said. The initial offering contained an option for the buyer to purchase up to $50 million of additional notes.

Magna owns all or part of 15 North American racetracks, including Santa Anita Park, Golden Gate Fields, Bay Meadows, Gulfstream Park, Lone Star Park, Pimlico Race Course, and Laurel Park.