Isle of Capri President Responds to Attorney General Madigan's Letter Regarding 10th Casino License in Illinois
April 01 2004 - 2:40PM
PR Newswire (US)
Isle of Capri President Responds to Attorney General Madigan's
Letter Regarding 10th Casino License in Illinois BILOXI, Miss.,
April 1 /PRNewswire-FirstCall/ -- At a press conference Thursday,
Isle of Capri Casinos, Inc. President and Chief Operating Officer
Timothy M. Hinkley presented facts and further details to
demonstrate that the company's winning proposal for the 10th casino
license is the best for the state of Illinois. Hinkley responded to
issues raised by Illinois Attorney General Lisa Madigan in her
letter to the Illinois Gaming Board (IGB) last week, in which
Madigan questioned the IGB's decision to grant Illinois' 10th
gaming license to Isle of Capri. Hinkley also expressed confidence
that Eric Holder's outside investigation of the licensing process,
commissioned last week by Governor Rod Blagojevich, will vindicate
the board's decision. Hinkley commented on the benefits of the Isle
proposal, saying, "Isle of Capri was the winner among the seven
bids for Illinois' 10th gaming license because our proposal will
generate the most money for the people of Illinois and area
communities. Isle will generate these financial benefits in the
quickest manner upon opening its doors and into the future. Isle
submittedthe best and highest offer. It's that simple." In
answering Attorney General Madigan's concerns about Isle of Capri's
financial strength, Hinkley said, "Just recently, Isle set out to
sell $400 million in Senior Subordinated Notes, but demand was so
great, that we were over-subscribed and able to complete a $500
million Senior Subordinated Note offering at a seven percent
interest rate, evidencing the strong support for the company in the
financial markets." Hinkley added, "Standard and Poor's andMoody
have noted the strengths of our financial situations and affirmed
our debt ratings." Hinkley also addressed the issue of the
company's integrity. "We operate in a highly regulated industry. We
recognize that regardless of preventative steps taken to ensure
that we operate our business within regulation, there is the
possibility for human error. We do our best to comply at all times
with all regulations in the jurisdictions in which we operate. The
frequent nature of fines and penalties does not excuse them. We are
proud of our record and compare favorably with the other gaming
companies operating in our jurisdictions, including companies that
currently operate in Illinois." Hinkley also reviewed a number of
factors he believes the IGB -- and the independent investment
banking firm commissioned to evaluate the bids -- used in granting
the license to Rosemont and Isle of Capri: -- Isle of Capri will
pay $518 million for this license. -- Isle of Capri will pay
approximately $1.1 billion in gaming taxes over the first five
years of operation in Illinois. -- Infrastructure is already in
place in Rosemont. Isle of Capri has guaranteed it will complete
and open a casino within 270 days of receiving all necessary
approvals to begin construction and will pay $500,000 for each day
the project is delayed up to $105 million -- which is testament to
its confidence in its ability to quickly construct and open the
casino. -- Isle of Capri's proposal requires Rosemont to drop its
litigation -- ensuring certainty of opening and greater proceeds to
the people of Illinois. -- The Village of Rosemont has an agreement
that will distribute approximately $18 million annually to
70municipalities. Again, the dollars involved, and the number of
municipalities to benefit, are far greater than under any other
proposal considered by the Illinois Gaming Board. Hinkley noted,
"Rothschild, the investment banker charged with evaluating the
proposals, evidently saw the obvious financial benefits of our
proposal, because it recommended to the IGB that Isle of Capri be
awarded the license. The Rothschild recommendation has been lost in
all of the subsequent discussion of what motivated the board to
choose Rosemont and Isle of Capri. Also lost in the discussion is
the fact that the board was actually duty bound to accept
Rothschild's recommendation, or come up with very good reasons why
in writing it should not." "Let me be clear: We support Ms.
Madigan's desire to ensure a fair and open process. That is why we
participated. We thought it was fair and open. Our issue is not
with her objectives for the process; it is rather her wanting to
change the ground rules after the fact," concluded Hinkley. Isle of
Capri Casinos, Inc., a leading developer and owner of gaming and
entertainment facilities, operates 16 casinos in 14 locations. The
company owns and operates riverboat and dockside casinos in Biloxi,
Vicksburg, Lula and Natchez, Mississippi; Bossier City and Lake
Charles (2 riverboats), Louisiana; Bettendorf, Davenport and
Marquette, Iowa; and Kansas City and Boonville, Missouri. The
company also owns a 57 percent interest in and operates land-based
casinosin Black Hawk (two casinos) and Cripple Creek, Colorado.
Isle of Capri's international gaming interests include a casino
that it operates in Freeport, Grand Bahama, and a two-thirds
ownership interest in a casino in Dudley, England. The company also
owns and operates Pompano Park Harness Racing Track in Pompano
Beach, Florida. 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 fiscal year ended April
27, 2003 and Form 10-Q for the fiscal quarters ended since that
date. Contacts: Lori Hutzler, Director of Corporate Communications
-- 228.396.7031 or 228.365.7416. Visit the Web site:
http://www.islecorp.com/ .
http://www.newscom.com/cgi-bin/prnh/20020502/ISLELOGO
http://photoarchive.ap.org/ DATASOURCE: Isle of Capri Casinos, Inc.
CONTACT: Lori Hutzler, Director of Corporate Communications of Isle
of Capri Casinos, +1-228-396-7031 or +1-228-365-7416 Web site:
http://www.islecorp.com/
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