Yonkers Racing Corporation announces amendments to its Consent Solicitation: Horse Racing news
The Yonkers Racing Corporation recently announced that it had made some changes to the its Consent Solicitation. This document is related to the consents obtained from the people who own the 11-3/8 percent Senior Secured Notes. The terms of these notes,
which are scheduled to be due in 2016, have been altered to the displeasure of many people.
According to what has been made public, the Yonkers Racing Corporation held talks with a group of holders of the notes. These discussions dealt with the terms and conditions defined in the original document and the changes that could be made to them.
One change which has been made to the Consent Solicitation deals with consent fee. The amount of the consent fee has now been increased to a figure of $12.50. This increase is applicable to the notes on which a principal amount of $1000 has been paid.
Another move that Yonkers are proposing is to give up their right of redemption on the principal amount, which adds up to a figure of $22.5 million. If this is accepted by the holders, the change would not be brought about immediately; rather, the right
would be given up over a period of two years. The redemption price that was set for this purpose was 103 percent of the notes that would be redeemed.
According to Yonkers, this change would be advantageous to the note holders. Further, the elimination of the redemption right does not require any consensual participation of the holders of the notes.
The Yonkers Raceway Corporation has been operational since 1899. At the time of its inception, it was named the Empire City Trotting Club. It came to be known as a prestigious site for horse racing in North America. In 1972, the ownership changed hands,
and it came under the wings of the Rooney family that belonged to Pittsburgh.
Yonkers covers a huge area that spans a distance of 97 acres. The facility is mainly popular for the gaming that is done there as well as the entertainment facility that it features.
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