Ameristar seeks to ensure it doesn’t violate leverage ratio covenants

Las Vegas-based Ameristar Casinos took steps today to ensure the company doesn’t violate the leverage ratio covenants of its credit facility during the second half of the year.

The regional casino operator said it amended the terms of the credit facility to give the company better financial flexibility.

Ameristar Chief Executive Officer Gordon Kanofsky said the company had the support of its lenders to make the changes. Ameristar’s current outstanding credit facility debt is $1.67 billion. In connection with obtaining the amendment, the company paid the credit facility lenders approximately $9 million in one-time upfront fees.

“This amendment provides us with much greater flexibility to continue to successfully operate and grow our business in these uncertain economic times,” Kanofsky said in a statement.

Ameristar operates casinos primarily in the south and Midwest. The company has two Northern Nevada casinos near the Nevada-Idaho border.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.