Interest Rate Swap Confirmation Agreement between Bank of America, N.A. and Mandalay Resort Group (July 24, 2003)
Bank of America, N.A. and Mandalay Resort Group entered into an interest rate swap agreement, confirming the terms of a $200 million transaction. Under this agreement, Bank of America pays a fixed interest rate of 6.5% while Mandalay Resort Group pays a floating rate based on 6-month USD LIBOR plus 2.39%. Payments are exchanged semi-annually from July 31, 2003, to July 31, 2009. The agreement is governed by a prior Rate Swap Master Agreement and incorporates ISDA definitions. Both parties agree to the recording of conversations related to this transaction.
Exhibit 10.4
233 South Wacker Drivc, Suitc 2800
Chicago, Illinois 60606
Tel ###-###-####
Fax ###-###-####
Bank of America N. A.
| TO: | Mandalay Resort Group |
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| 2330 Las Vegas Blvd-South |
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| Las Vegas, NV 89109 |
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| ATTN: | Amy Preiss |
| TEL: | 702 ###-###-#### |
| FAX: | 702 ###-###-#### |
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| FROM: | Bank of America, N.A. |
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| Date: | 24JUL03 |
Our Reference No. 3106389
Internal Tracking Nos. 13030303
The purpose of this letter agreement is to confirm the terms and conditions of the Transaction entered into between Mandalay Resort Group and Bank of America, N.A. (each a “party” and together “the parties”) on the Trade Dale specified below (the “Transaction”). This letter agreement constitutes a “Confirmation” as referred to in the Rate Swap Master Agreement specified in paragraph 1 below (the “Agreement”).
The definitions and provisions contained in the 2000 ISDA Definitions, as; published by the International Swaps and Derivatives Association, Inc., (the “Definitions”) are incorporated into this Confirmation. In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern.
1. This Confirmation supplements, forms part of, and is subject to, the Rate Swap Master Agreement dated as of 240CT86, as amended and supplemented from time to time (the “Agreement”), between the parties. Al provisions contained in the Agreement govern this Confirmation except as expressly modified below.
In this Confirmation “Party A” means Bank of America, N.A. and “Party B” means Mandalay Resort Group.
2. The terms of the particular Transaction to which this Confirmation relates are as follows:
Notional Amount: USD 200,000,000.00
Trade Date: 22JUL03
Effective Date: 31JUL03
Termination Dale: 31JUL09, subject to adjustment in accordance with the Modified Following Business Day Convention
Fixed Amounts:
Fixed Rate Payer: Party A
Fixed Rate Payer Payment
Dates: The 31st of each January and July, commencing 31JAN04 and ending 31JUL09, subject to adjustment in accordance with the Modified Following Business Day Convention. No Adjustment Of Period End Dates.
Fixed Rate: 6.50000%
Fixed Rate Day Count
Fraction: 30/360
Floating Amounts:
Floating Rate Payer: Party B
Floating Rate Payer
Payment Dates: The 31st of each January and July, commencing 31JAN04 and ending 31JUL09, subject to adjustment in accordance with the Modified Following Business Day Convention.
Floating Rate for initial
Calculation Period: TO BE SET
Floating Rate Option: USD-LIBOR-BBA
Averaging: Inapplicable
Designated Maturity: 6 Month
Spread: Plus 2.390000%
Floating Rate Day Count
Fraction: Actual/360
Reset Dates: Fixed/Floating Rate Payer Reset Dates: The Reset Dale for a Calculation Period will be the first day of the next following Calculation Period provided that for the final Calculation Period the Reset Dale will be the Termination Date.
Compounding: Inapplicable
Business Days: New York, London
Calculation Agent: Party A
3. Recording of Conversations:
Each party to this Transaction acknowledges and agrees to the tape recording of conversations between the parties to this Transaction whether by one or other or both of the parties or their agents, and that any such tape recordings may be submitted in evidence in any Proceedings relating to the Agreement and/or this Transaction.
4. Account Details:
Account for payments to Party A:
USD
We will debit your account.
NAME: Bank of America
ABA #: CA
ACCT: 1257501024
Mandalay Resort Group
Account for payments to Party B:
USD
NAME: Bank of America
ABA #: CA
NAME: Mandalay Resort Group
ACCT: 1257501024
5.Off Ices:
The Office of Party A for this
Transaction is: Charlotte, NC
Please send reset notices to fax no. (312 ###-###-####)
The Office of Party B for this
Transaction is: Nevada, USA
Credit Support Document: As per Agreement (and Credit Support Annex if applicable).
Please confirm that the foregoing correctly sets forth the terms and conditions of our agreement by returning via telecopier an executed copy of this Confirmation to the attention of Global Derivative Operations at (fax no ###-###-####).
Yours Sincerely,
Bank of America, N.A.
Dave Walker
Senior Vice President
Authorized Signatory Accepted and confirmed as of the dale first written:
Mandalay Resort Group
| By: | /s/ LES MARTIN |
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| Name: | Les Martin |
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| Vice President, Chief Accounting | |||||
| Title: | Officer and Treasurer |
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Our Reference # 311 06389
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