Hope to Revitalize Downtown Las Vegas with a Transformation
of the 1,907 room Golden Nugget
|LAS VEGAS, Sept. 27, 2005 - Landry's Restaurants, Inc. (NYSE: LNY),
one of the nation's largest casual dining and entertainment companies,
announced completion of its acquisition of Poster Financial Group, Inc.
(PFG). The acquisition includes The Golden Nugget hotel-casinos in Las
Vegas and Laughlin, Nev.
Under the terms of the transaction, PB Gaming, the sole stockholder of PFG, sold all of its shares of PFG to Landry's Gaming, Inc., a wholly-owned subsidiary of Landry's, for $140 million in cash. Houston-based Landry's also is assuming $155 million of senior secured notes due 2011 and PFG's outstanding credit facility and is paying certain working capital liabilities, including house banks in the amount of $23 million, as part of the transaction.
"We hope to revitalize downtown Las Vegas with our transformation of The Golden Nugget, much as we have helped revitalize downtown Houston with our aquarium, hospitality and restaurant concepts. We've also played the primary role in the development of the NASA/Clear Lake area with the Kemah Boardwalk in Kemah, Texas," said Tilman Fertitta, chairman, president and CEO of Landry's. "The Golden Nugget is a strong foundation for our emerging gaming division, and we look forward to introducing the brand into other markets as time goes on."
Landry's plans to build on The Golden Nugget's tradition of dining excellence by adding two of its established signature concepts: Vic and Anthony's, a world-class steakhouse; and Grotto, a trattoria-style restaurant featuring fine Italian dishes.
Landry's operates 28 different restaurant brands and is the nation's second-largest developer of aquariums. The company is a leader in the meeting, convention and event industry, with a state-of-the-art beachfront convention center in Galveston, Texas, and unique meeting spaces incorporated into each of its entertainment complexes, such as the Downtown Aquarium properties in Houston and Denver. Landry's also operates several hotels, including Inn at the Ballpark, a boutique luxury hotel across from Minute Maid Park, home of the Astros, in Houston, and Boardwalk Inn, a waterfront boutique property, on Kemah Boardwalk.
The Golden Nugget Las Vegas property recently underwent $35 million in upgrades and room renovations which were completed in 2003. Landry's plans to create a uniform appearance throughout the grounds, inside and out, to tie all of the elements of the property into a distinctive whole. The Golden Nugget, one of the most recognizable names in gaming, occupies more than seven acres in downtown Las Vegas with nearly 40,000 square feet of gaming area. The lavish property currently features three towers containing 1,907 guestrooms and suites, the largest number of guest rooms in downtown Las Vegas, with some of the most dynamic suites in town.
In 1995, The Golden Nugget was a founding member of the Fremont Street Experience, a five-block-long pedestrian mall boasting multi-sensory light shows choreographed to booming symphonic sound. The project was undertaken in an effort to breathe new life into downtown Las Vegas, and now draws more than 25,000 visitors per day. With the redevelopment of The Golden Nugget, Landry's will renew the momentum of the last decade and will position itself at the center of the movement to take downtown Las Vegas to the next level. Recent signs of downtown's progress include the World Market Center, a home furnishings market that hosts two annual expos for the design trade and is the largest and most comprehensive home furnishings complex in the western United States, as well as the construction of several luxury high-rise apartment buildings.
"Downtown Las Vegas is on the upswing," Fertitta said. "We look forward to working together with other businesses and with the city government to transform downtown as Las Vegas moves into its second century."
The Golden Nugget Las Vegas was established in 1946 as a gambling hall. The property gained worldwide recognition under the ownership of gaming mogul Steve Wynn, who purchased controlling stock in 1972. In the late 1980s, Wynn purchased the Nevada Club in Laughlin, Nev., located 90 miles south of Las Vegas on the Nevada-Arizona border. Situated on the banks of the Colorado River, the 300-room property has been operating as The Golden Nugget Laughlin since 1988.
The Golden Nugget Las Vegas casino has more than 1,300 modern slot machines and 70 table games, a poker room and race and sports book. A high- limit salon offers an intimate setting with a large variety of games. The hotel boasts a 400-seat showroom, which features stars such as Tony Bennett and Regis Philbin, and offers approximately 30,000 square feet of meeting and banquet facilities, including a 10,000 square-foot glass-enclosed pavilion.
The Golden Nugget Las Vegas currently features several award-winning restaurants, retail shops, an outdoor pool and a spa and salon, among many other amenities. The property received its first AAA Four Diamond award for excellence in 1977, and has now received the honor for 28 consecutive years.
The Golden Nugget Laughlin, a 300-room property on 13 acres, has 600 feet of Colorado River frontage near the center of the tourist strip in Laughlin, Nev. Landry's plans to add two distinctive Landry's brands, Joe's Crab Shack and Saltgrass Steak House, and a second hotel tower to the Laughlin property. The Golden Nugget Laughlin's 32,000-square-foot casino features more than 1,000 slot machines and more than 30 table games. Additional amenities include numerous restaurants and bars, including Tarzan's, a popular sports bar featuring live entertainment and a nightclub and a variety of retail shops.
About Landry's Restaurants
Landry's Restaurants, Inc., is one of the nation's largest and fastest growing casual-dining and entertainment companies. Publicly traded on the New York Stock Exchange,
Landry's owns and operates more than 300 restaurants, including Landry's Seafood House, Joe's Crab Shack, The Crab House, Rainforest Cafe, Charley's Crab, Willie G's Seafood & Steak House, The Chart House, and Saltgrass Steak House. Landry's also owns several icon developments, including Downtown Aquariums in Houston and Denver. The company employs approximately 36,000 workers in 36 states.
This press release contains forward-looking statements within the meaning of the Federal Securities Laws.
Landry's Restaurants, Inc.
|Also See:||Two 34 Year Old Internet Millionaires Acquiring Golden Nugget Hotel-Casinos in Downtown Las Vegas and Laughlin for Approximately $215 million / June 2003|
|Tim Poster and Tom Breitling Could Split up to $150 million in Profits With Sale of Golden Nugget for $295 million in Cash and Debt Assumption to Landry's Restaurants / February 2005|