The Sands Regent Announces $38 Million Agreement to Purchase Rail City Casino
December 08 2003 - 8:30AM
PR Newswire (US)
The Sands Regent Announces $38 Million Agreement to Purchase Rail
City Casino RENO, Nev., Dec. 8 /PRNewswire-FirstCall/ -- The Sands
Regent , parent company to the Sands Regency Casino/Hotel in
downtown Reno, Nevada and Gold Ranch Casino and RV Resort in Verdi,
Nevada, announced today the signing of an agreement to purchase
Rail City Casino in Sparks, Nevada, from Alliance Gaming
Corporation . The expected purchase price is approximately $38
million, consisting of approximately $35 million in cash and
approximately $3 million in subordinated debt carried by the
seller. The final purchase amount will be based on the twelve-month
financial performance of Rail City prior to closing of the sale on
a date as yet unknown. Management of The Sands Regent expects the
sale to close in the spring of 2004, pending regulatory approval.
Rail City Casino has approximately 16,600 square feet of gaming
space housing 550 slots, 7 table games, keno, a sports book, the
Club Car family-style restaurant and the Side Trax Lounge. Its
customer base consists predominantly of local area residents who
enjoy the relaxed atmosphere, frequent events, promotions and
weekend live music offered by "Your Friendly Neighborhood Casino."
Prior to a grand re-opening as Rail City in August 1997, it was
long known as the Plantation Casino. Located near Victorian Square
at 2121 Victorian Avenue in Sparks, it is the first casino a
motorist encounters when exiting Interstate 80 at the Rock
Boulevard exit (Exit 16). Ferenc Szony, President and CEO of The
Sands Regent, commented, "The acquisition of Rail City Casino makes
a powerful statement about the Sands Regent's plans for future
growth while giving us an immediate impact in the Northern Nevada
locals market." Mr. Szony continued, "Our previously announced
strategy to expand operations within the Reno-Sparks market is
being realized once again with this agreement. Rail City has the
loyal customer base, convenient location, a great team of employees
and proximity to our other two properties that we have been looking
for in selecting potential acquisitions. By acquiring Rail City, as
with the acquisition of Gold Ranch before it, we are expanding our
presence in the market we know and love best, and look forward to
significant additional opportunities for cost-effective
cross-marketing and cross-promotion. Pending customary approvals,
we are pleased to add Rail City to our growing portfolio of
friendly, fun casino operations." Robert Saxton, Sr. Vice President
and CFO, President Casino Operations for Alliance Gaming, said,
"Rail City has been a great property for us, and the decision to
sell it has been a difficult one. But we appreciate The Sands
Regent's in-depth knowledge of and experience in the Reno-area
market and feel confident that Rail City will be in good hands.
Further, we can now focus more closely on growing the manufacturing
and gaming systems side of our business." About Alliance Gaming
Alliance Gaming is a diversified gaming company with headquarters
in Las Vegas. The Company is engaged in the design, manufacture,
operation and distribution of advanced gaming devices and systems
worldwide, and is the nation's largest gaming machine route
operator and operates two casinos. Additional information about the
Company can be found at http://www.alliancegaming.com/ . About The
Sands Regent The Sands Regent owns and operates the Sands Regency
Casino and Hotel in downtown Reno, Nevada and Gold Ranch Casino and
RV Resort in Verdi, Nevada. The Sands Regency is an 850-room hotel
and casino with 29,000 square feet of gaming space offering table
games, keno, bingo and slot machines. In addition to complete
amenities and on-site brand-name restaurants, the Company's
property also includes a 12,000-square-foot convention and meeting
center which seats close to 1,000 people. For further information,
visit http://www.sandsregency.com/ . The Gold Ranch Casino and RV
Resort is located in Verdi, Nevada, twelve miles west of Reno. Gold
Ranch offers approximately 275 slot machines in an 8,000 square
foot casino, two restaurants, two bars, a 105-space RV park, a
California lottery station, an ARCO gas station and a convenience
store. Web site: http://www.goldranchrvcasino.com/ . Statements
contained in this release, which are not historical facts, are
"forward-looking" statements as contemplated by the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties, including the
potential impact of future gaming regulatory decisions, general and
regional economic conditions, competition in the Reno area and from
California Native American casino operations, the Company's
possible need for outside financing to pursue its growth plans, and
other risk factors detailed from time to time in The Sands Regent's
periodic reports and registration statements filed with the
Securities and Exchange Commission. Such risks could cause actual
results to differ materially from those projected or implied in the
forward-looking statements. For further information, please
contact: Ferenc Szony, President and CEO of The Sands Regent,
+1-775-348-2210 or fax, +1-775-348-6241; or Sean Collins, Partner
of CCG Investor Relations, +1-818-789-0100 or fax, +1-818-789-1152,
for The Sands Regent. DATASOURCE: The Sands Regent CONTACT: Ferenc
Szony, President and CEO of The Sands Regent, +1-775-348-2210 or
fax, +1-775-348-6241; or Sean Collins, Partner of CCG Investor
Relations, +1-818-789-0100 or fax, +1-818-789-1152, for The Sands
Regent Web site: http://www.goldranchrvcasino.com/ Web site:
http://www.alliancegaming.com/ Web site:
http://www.sandsregency.com/
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