Hotel Online Special Report Isle of Capri Casinos, Inc. Plans to Acquire Casinos in Black Hawk and Cripple Creek, Colorado for $84 million December 26, 2002 – Isle of Capri Black Hawk L.L.C. (“Isle Black Hawk”), a joint venture between Isle of Capri Casinos, Inc. and Nevada Gold & Casinos, Inc. , announced today that it has entered into a definitive agreement to acquire the Colorado casino operations of International Game Technology, Inc. for $84 million, which is approximately 5.8 times trailing twelve months EBITDA through October, 2002. The agreement is subject to the satisfaction of several conditions including financing and the approval of the Colorado Gaming Commission.
The Colorado casino operations of IGT consists of the Colorado Central Station Casino, located in Black Hawk, and the Colorado Grande Casino, located in Cripple Creek. The purchase by Isle Black Hawk includes the 20% interest owned by a third party in the Colorado Grand Casino. It is anticipated that the transaction will close in the spring of 2003.
Upon the consummation of the acquisition, Isle Black Hawk plans to invest approximately $75 million in Black Hawk to significantly increase covered parking for both properties, add additional casino space, hotel rooms, restaurants and connect the properties by means of a skywalk that can service both facilities.
Isle of Capri Black Hawk is the largest hotel casino in Colorado and is jointly owned by Isle of Capri Casinos and Nevada Gold & Casinos, which own 57 percent and 43 percent, respectively. Pursuant to a management agreement, Isle of Capri Casinos receives a fee for operating Isle of Capri Black Hawk. Isle of Capri Casinos will also manage the new casino operations on the same terms and conditions.
Isle of Capri Casinos, Inc. owns and operates 13 riverboat, dockside and land-based casinos at 12 locations, including Biloxi, Vicksburg, Lula and Natchez, Mississippi; Bossier City and Lake Charles (two riverboats), Louisiana; Black Hawk, Colorado; Bettendorf, Davenport and Marquette, Iowa; and Kansas City and Boonville, Missouri. Isle of Capri also operates Pompano Park Harness Racing Track in Pompano Beach, Florida.
Nevada Gold & Casinos, Inc. of Houston, Texas is a developer of gaming properties and has real estate interests in Colorado, California, and Nevada. UWN owns a 43 percent interest in The Isle of Capri-Black Hawk L.L.C., which has a 237-room hotel/casino located about 35 miles west of Denver, through a joint venture with Isle of Capri Casinos, Inc. UWN has 69 percent ownership of Dry Creek Casino, LLC, which is assisting the Dry Creek Rancheria Band of Pomo Indians with their River Rock Casino, Alexander Valley—in Sonoma County (about 70 miles north of San Francisco in the California wine country). Also, Nevada Gold has a 51% ownership of Route 66 Casinos, LLC, which is assisting the Pueblo of Laguna in the development of a Route 66-themed casino 11 miles west of Albuquerque, New Mexico—planned for opening in 2003.
This press release contains forward-looking statements which are subject to change.
Isle of Capri Casinos, Inc Allan B. Solomon, Executive Vice President +1-561-995-6660 http://www.theislecorp.com
Nevada Gold & Casinos, Inc. H. Thomas Winn President & CEO +1-713-621-2245
Also See The 237-room Isle of Capri Black Hawk Hotel Opens in Black Hawk, Colorado / August 2000 Penn National Gaming Inc., Completes $6.5 million Purchase of Bullwhackers Casino in Black Hawk, Colorado / April 2002