The Sands Regent Closes Acquisition of Rail City Casino and Secures New Financing
May 03 2004 - 9:30AM
PR Newswire (US)
The Sands Regent Closes Acquisition of Rail City Casino and Secures
New Financing RENO, Nev., May 3 /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 completion of an agreement to purchase
Rail City Casino in Sparks, Nevada from Alliance Gaming Corporation
, headquartered in Las Vegas. The Sands Regent became the owner and
operator of Rail City on May 1, 2004. Under terms of the sales
agreement announced in December 2003, The Sands Regent has paid
Alliance Gaming $37 million in cash and a $.9 million subordinated
note payable over three years. Ferenc Szony, President and CEO of
The Sands Regent, commented, "Rail City Casino's loyal customer
base, great team of employees, and convenient location close to our
other two properties make it exactly the kind of acquisition we
were looking for to expand our presence in Northern Nevada. It
gives us enhanced opportunities for cost-effective cross-marketing
and cross-promotion in the Reno-area market, which continues to
grow faster than both national and regional averages and is
expected to grow another 17% to 400,000 area residents by 2010
according to the Nevada state demographer. We are pleased to add
Rail City to our gaming property portfolio." Management also
announced that in conjunction with the purchase of Rail City
Casino, the Company refinanced its current line of credit with a
Wells Fargo Bank syndicated, 5-year, $20,000,000 term loan with an
initial interest rate of LIBOR plus 4% or Prime plus 2.5%.
Additionally, the Company secured a Wells Fargo Bank syndicated,
5-year, $22,000,000 revolving credit facility with a similar
interest rate structure and requires no payment of principal until
maturity on May 1, 2009. About The Sands Regent The Sands Regent
owns and operates the Sands Regency Casino and Hotel in downtown
Reno, Nevada, Gold Ranch Casino and RV Resort in Verdi, Nevada and
Rail City Casino in Sparks, 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 260 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/. Rail City
Casino, located in Sparks, Nevada, has approximately 16,600 square
feet of gaming space housing more than 600 slots, 7 table games,
keno, a sports book, the City Cafe family-style restaurant and a
sports bar. 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).
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, including but not limited to, 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, fax +1-775-348-6241; or Sean Collins, Partner, CCG
Investor Relations, +1-818-789-0100, 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, fax
+1-775-348-6241; or Sean Collins, Partner, CCG Investor Relations,
+1-818-789-0100, fax +1-818-789-1152, for The Sands Regent Web
site: http://www.goldranchrvcasino.com/ Web site:
http://www.sandsregency.com/
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