LAS VEGAS and MINNEAPOLIS,
Aug. 3, 2015 /PRNewswire/
-- Golden Entertainment, Inc. (formerly Lakes Entertainment,
Inc.) (NASDAQ: LACO) announced today that the merger between
Sartini Gaming, Inc. ("Golden Gaming") and a subsidiary of Lakes
Entertainment, Inc. has closed, after receiving various approvals
from the Lakes' shareholders at the company's annual meeting on
July 29. In connection with the
merger, Lakes has been renamed Golden Entertainment, Inc.
The all-stock transaction unites two renowned and respected
brands in the gaming space. The newly combined company operates
approximately 9,250 slot machines and video lottery terminals in
Nevada and Maryland across four casino properties, 48
taverns and 670 route locations. Golden Entertainment's
headquarters is now based in Las Vegas,
Nevada.
"Today is a truly monumental and meaningful day for our company,
our team members, our business partners and the markets we
collectively serve," said Blake L. Sartini, the newly-appointed
President, Chairman and Chief Executive Officer of Golden
Entertainment, Inc. "With Golden Entertainment, we now have a
national, diversified gaming company with strong assets across the
country. And with this infrastructure, we look forward to further
enhancing our unique blend of distributed gaming, casinos and
taverns."
Lyle Berman, former Chairman of
Lakes Entertainment Inc. stated, "Our cash along with the Rocky Gap
Casino, when combined with the diverse operations of Golden Gaming,
provides an exciting growth opportunity for our existing and future
shareholders. The combined company's refinanced debt will provide
an immediate benefit in company net income and free cash flow."
Lakes issued an aggregate of 8,229,908 shares of its common
stock in connection with the merger, of which 7,772,736 shares
(subject to post-closing adjustments) were issued to The Blake L.
Sartini and Delise F. Sartini Family Trust, the sole shareholder of
Golden Gaming. The company's common stock continues to be traded on
the NASDAQ Stock Market and its trading symbol, effective
August 4, 2015, will be changed from
"LACO" to "GDEN".
In connection with the closing of the merger, the size of the
board of directors of the combined company was increased from five
to seven. Larry Barenbaum and
Ray Moberg resigned from the
formerly Lakes Entertainment board. Subsequently, Blake Sartini was appointed the new Chairman of
the Board of Golden Entertainment, and the remaining three
vacancies were filled by the following appointees:
- Mark Lipparelli – Chief
Executive Officer of Gioco Ventures, a strategic advisory and
product development firm serving the gaming, investment, technology
and entertainment industries across the globe. Lipparelli also
currently represents State Senate District 6 in the Nevada
Legislature, a post he has held since December 2014. Lipparelli is a board trustee of
the University of Nevada Foundation,
board member of the National Center for Responsible Gaming and
served as a board member and Chairman of the Nevada State Gaming
Control Board between 2009 and 2012.
- Robert Miodunski – former Chief
Executive Officer of American Gaming Systems from 2010 until its
acquisition by Apollo Entertainment in late 2014. Miodunski also
previously served as Chief Executive Officer of Alliance Gaming
Corporation from 2001 to 2004 and President of United Coin from
1994 to 1999. From 2005 to 2008, Miodunski served on the board of
directors of Elixir Gaming Technologies, Inc.
- Terrence Wright – Chairman of
the Board and majority owner of Westcor Land Title Insurance
Company, a company he founded in 1991 and which is licensed to
issue policies of title insurance throughout the United States. Wright is currently on the
board of Southwest Gas Corporation, is an emeritus member and past
chairman of the University of Nevada Las
Vegas Foundation Board and is the past chairman for the
Nevada Development Authority, the Nevada Land Title Association and
the Nevada Chapter of the Young Presidents' Organization.
Messrs. Sartini, Lipparelli, Miodunski and Wright join existing
directors Lyle A. Berman;
Timothy J. Cope (formerly President
and Chief Financial Officer of Lakes) and Neil I. Sell on the Golden Entertainment board.
The company's newly-appointed management team consists of Sartini;
Chief Financial Officer Matthew W.
Flandermeyer; and Chief Operating Officer Stephen A. Arcana.
Golden Entertainment also announced today the successful
syndication and closing of a new $160
million senior secured credit facility, comprising a
$120 million senior secured term loan
(which was fully drawn at closing) and a $40
million senior secured revolving credit facility (of which
$25 million was drawn at closing).
The new facility matures in 2020. Borrowings under the new facility
bear interest, at the company's option, at either (1) the highest
of the federal funds rate plus 0.50%, the Eurodollar rate for a
one-month interest period plus 1.00%, or the administrative agent's
prime rate as announced from time to time, or (2) the Eurodollar
rate for the applicable interest period, plus an applicable margin
based on the company's leverage ratio ranging from 1.75% to 2.75%
for Eurodollar loans and 0.75% to 1.75% for base rate loans. Net
proceeds from the new facility were used to repay and discharge all
of the outstanding senior secured indebtedness of Golden Gaming as
well as Lakes' outstanding Rocky Gap indebtedness. The interest
rates under the new senior secured credit facility, which are lower
than previously anticipated, are expected to result in significant
interest savings compared to Golden Gaming's prior interest
expense. Capital One and KeyBank National Association acted as the
joint lead arrangers and joint book runners for the new facility.
Capital One acted as administration agent and KeyBank National
Association acted as syndication agent in connection with the new
facility.
Macquarie Capital served as Lakes' exclusive financial advisor.
Gray, Plant, Mooty, Mooty & Bennett, P.A. served as legal
counsel to Lakes. Union Gaming Advisors, LLC served as Golden
Gaming's financial advisor. Latham & Watkins LLP served as
legal counsel to Golden Gaming. Hunton & Williams LLP served as
legal counsel to the lenders.
About Golden Entertainment, Inc.
Golden Entertainment, Inc., formerly Lakes Entertainment, Inc.,
offers an unmatched blend of gaming diversity. Through its three
dynamic gaming divisions — Golden Casino Group, PT's Entertainment
Group and Golden Route Operations — the Golden group of companies
operates 9,250 slot machines and video lottery terminals, as well
as 22 table games in Nevada and
Maryland across four casino
properties, 48 taverns and 670 route locations.
Golden Casino Group offers four distinctive, inviting resorts:
In Pahrump, Nevada - the Pahrump
Nugget Hotel & Casino, Gold Town Casino, and Lakeside Casino
and RV Park and in Flintstone,
Maryland - the Rocky Gap Resort. All feature an
exciting mix of gaming, dining and entertainment and a superior
level of guest service.
PT's Entertainment Group is Nevada's largest tavern operator, with 48
establishments. It operates PT's, Sierra
Gold and Sean Patrick's in
Southern Nevada and Sierra Gold and Sierra Junction in Northern Nevada. All Nevada locations feature the exclusive,
proprietary Golden Rewards player rewards program.
Golden Route Operations is Nevada's largest distributed gaming operator,
with more than 7,100 machines in 670 locations statewide. Golden
Route Operations is a market leader in player tracking, rewards,
player recognition and communication technology with its Golden
Edge Slot Management System. Golden Route Operations includes
Albertsons, Smith's, Vons, CVS, Pilot Travel, Love's Travel and
Buffalo Wild Wings as long-term national partners. For more
information, visit www.goldenent.com.
Media Contact:
Jesse
Scott | 702-739-9933, ext. 228
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SOURCE Golden Entertainment, Inc.