Vegas Crest Casino
HOUSTON, Jun 1, 2010 (GlobeNewswire via COMTEX) -- Nevada Gold & Casinos,
Inc. (UWN 0.91, +0.03, +3.40%) announced today that the bankruptcy court has
approved the Company's acquisition of up to seven mini-casinos in Washington. No
further bankruptcy court action will be necessary in order for the acquisitions
"The process of purchasing the mini-casinos has continued to go smoothly and we are excited about the court's decision. This decision is a very important step in the process. We hope to close the deal within 30-60 days and are currently in the process of obtaining the gaming and liquor board licenses for these properties and finalizing our loan documents with our lender," said Robert Sturges, CEO of Nevada Gold.
"Our well established team in Washington is preparing for the sale to be completed so we can put our experience from our other properties in that area to good use. As we've said previously, the recent trends for our existing three mini-casinos in Washington have performed above our expectations for calendar year 2010 to date. We are very pleased with the effective multiple of three to four times EBITDA that we are paying to the sellers of these properties," Mr. Sturges concluded.
The casinos are currently owned by subsidiaries of Evergreen Gaming Corporation ("Evergreen"), a British Columbia corporation, which is under bankruptcy court protection due to a burdensome debt structure. The transaction will be financed by cash on hand as well as a $5.1 million note issued to Evergreen's current senior lender.
The seven casinos are The Silver Dollar Seatac, The Silver Dollar Renton, The Silver Dollar Mill Creek, The Silver Dollar Tukwila, Club Hollywood, located in Shoreline, the Royal Casino located in Everett and The Golden Nugget Casino located in Tukwila. All of the casinos are located in western Washington. Combined, the seven facilities have a total of approximately 100 table games including blackjack, Spanish 21 and other popular banked table games.
Closing of the acquisition is subject to other customary closing conditions, including licensing, necessary lease transfers among other conditions.
Return to Washington Casinos.
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