ST. LOUIS, Aug. 22, 2016 /PRNewswire/ -- Isle of Capri
Casinos, Inc. (NASDAQ:ISLE) announced today that it has entered
into a definitive agreement to sell the Isle of Capri Casino Hotel
Lake Charles to an affiliate of Laguna Development Corporation
("LDC"), a Pueblo of Laguna-owned
business based in Albuquerque, New
Mexico.
Under the terms of the agreement, Kicks Entertainment, LLC, a
newly formed entity owned by LDC and Eagle Holdings, LLLP, will
purchase Isle of Capri Casino Hotel Lake Charles for cash
consideration of approximately $134.5
million, which represents 7.8x fiscal 2016 Adjusted EBITDA,
subject to a customary working capital adjustment.
Eric Hausler, chief executive
officer of Isle of Capri Casinos, commented, "This transaction
provides us with an opportunity to unlock significant value for our
shareholders. On a pro forma basis, we expect the transaction
to increase Adjusted EBITDA margins, while further deleveraging our
balance sheet. Following the completion of the sale, we intend to
use the cash proceeds we receive from this transaction to reduce
debt and for other corporate purposes.
"We have enjoyed owning and operating Isle of Capri Casino Hotel
Lake Charles for more than 20 years, and we appreciate the hard
work and dedication of our team. While we work on a smooth
transition to Kicks Entertainment, LLC, our focus remains on
providing our customers with the great experiences they have come
to expect from Isle of Capri Casino Hotel Lake Charles."
Isle of Capri Casino Hotel Lake Charles will be accounted for as
discontinued operations beginning in the fiscal 2017 second
quarter. The sale is expected to close in late fiscal
2017/early fiscal 2018, subject to the approval of the Louisiana
Gaming Control Board, the expiration or termination of the waiting
period under the Hart-Scott-Rodino Act, as well as customary
closing conditions.
About Isle of Capri Casinos, Inc.
Isle of Capri Casinos, Inc. is a leading regional gaming
and entertainment company dedicated to providing guests with an
exceptional experience at each of the 14 casino properties that it
owns or operates, primarily under the Isle and Lady Luck
brands. The Company currently operates gaming and
entertainment facilities in Colorado, Florida, Iowa, Louisiana, Mississippi, Missouri, and Pennsylvania. More information is available at
the Company's website, www.islecorp.com.
Forward-Looking Statements
This press release may be deemed to contain forward-looking
statements, which are subject to change. These forward-looking
statements may be significantly impacted, either positively or
negatively by various factors, including without limitation,
licensing, and other regulatory approvals, financing sources,
development and construction activities, costs and delays, weather,
permits, competition and business conditions in the gaming
industry. The forward-looking statements are subject to numerous
risks and uncertainties that could cause actual results to differ
materially from those expressed in or implied by the statements
herein.
Additional information concerning potential factors that could
affect the Company's financial condition, results of operations and
expansion projects, is included in the filings of the Company with
the Securities and Exchange Commission, including, but not limited
to, its Form 10-K for the most recently ended fiscal year.
CONTACT:
Isle of Capri Casinos, Inc.,
Jill Alexander, Senior Director
of Corporate Communication-314.813.9368
www.islecorp.com
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SOURCE Isle of Capri Casinos, Inc.