Isle of Capri Casino Hotel Lake Charles to be Sold
August 22, 2016
Isle of Capri Casinos, Inc. (NASDAQ: ISLE) announced today that it has entered
into a definitive agreement to sell the Isle of Capri Casino Hotel Lake Charles
to an affiliate of Laguna Development Corporation ("LDC"), a Pueblo of
Laguna-owned business based in Albuquerque, New Mexico.
Under the terms of the agreement, Kicks Entertainment, LLC, a newly formed
entity owned by LDC and Eagle Holdings, LLLP, will purchase Isle of Capri Casino
Hotel Lake Charles for cash consideration of approximately $134.5 million, which
represents 7.8x fiscal 2016 Adjusted EBITDA, subject to a customary working
Eric Hausler, chief executive officer of Isle of Capri Casinos, commented, "This
transaction provides us with an opportunity to unlock significant value for our
shareholders. On a pro forma basis, we expect the transaction to increase
Adjusted EBITDA margins, while further deleveraging our balance sheet. Following
the completion of the sale, we intend to use the cash proceeds we receive from
this transaction to reduce debt and for other corporate purposes.
"We have enjoyed owning and operating Isle of Capri Casino Hotel Lake Charles
for more than 20 years, and we appreciate the hard work and dedication of our
team. While we work on a smooth transition to Kicks Entertainment, LLC, our
focus remains on providing our customers with the great experiences they have
come to expect from Isle of Capri Casino Hotel Lake Charles."
Isle of Capri Casino Hotel Lake Charles will be accounted for as discontinued
operations beginning in the fiscal 2017 second quarter. The sale is expected to
close in late fiscal 2017/early fiscal 2018, subject to the approval of the
Louisiana Gaming Control Board, the expiration or termination of the waiting
period under the Hart-Scott-Rodino Act, as well as customary closing conditions.
Return to Missouri Casinos.