|
Eldorado
Resorts Enters Into Definitive Agreements to Sell
|
Presque
Isle Downs & Casino and Lady Luck Casino Vicksburg
|
|
Reno, NV – March
2018 / Newsmaker Alert / Eldorado
Resorts, Inc. (NASDAQ: ERI) (“Eldorado” or the “Company”) announces
that it entered into definitive agreements to sell substantially all of
the assets and liabilities of Presque Isle Downs & Casino in Erie,
Pennsylvania and Lady Luck Casino Vicksburg in Vicksburg, Mississippi to
Churchill Downs Incorporated (NASDAQ: CHDN). Under the terms of the agreements,
Churchill Downs will purchase Presque Isle Downs & Casino for cash
consideration of approximately $178.9 million and Lady Luck Casino Vicksburg
for cash consideration of approximately $50.6 million, in each case subject
to a customary working capital adjustment.
Both
transactions are subject to receipt of required regulatory approvals, termination
of the waiting period under the Hart-Scott-Rodino Act and other customary
closing conditions, including, in the case of Presque Isle Downs &
Casino, the prior closing of the sale of Lady Luck Casino Vicksburg. The
Lady Luck Casino Vicksburg transaction is expected to close in the second
quarter of 2018, and the Presque Isle Downs & Casino transaction is
expected to close in late 2018.
Gary
Carano, Chairman and Chief Executive Officer of Eldorado, commented, “Our
agreements to divest Presque Isle and Lady Luck Vicksburg are consistent
with our strategy to maximize returns from our portfolio of regional gaming
assets through investments in new properties as well as opportunistic divestitures.
The sale price represents an attractive multiple of these properties’ trailing
twelve months cash flows. We remain fully committed to expanding our platform
into growth markets that we believe have the potential for high returns
as well as deploying capital toward high return investments in our existing
properties.”
Macquarie
Capital is acting as exclusive financial advisor to Eldorado in connection
with the proposed transactions.
About
Eldorado Resorts, Inc.
Eldorado
Resorts is a leading casino entertainment company that owns and operates
twenty properties in ten states, including Colorado, Florida, Iowa, Louisiana,
Mississippi, Missouri, Nevada, Ohio, Pennsylvania and West Virginia. In
aggregate, Eldorado’s properties feature approximately 21,000 slot machines
and VLTs and 600 table games, and over 7,000 hotel rooms. For more information,
please visit www.eldoradoresorts.com.
Forward-Looking
Statements
This
press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based on the current expectations of Eldorado and are subject
to uncertainty and changes in circumstances. These forward-looking statements
may be identified by the use of words such as “expect,” “anticipate,” “believe,”
“estimate,” “potential,” “should,” “will” or similar words intended to
identify information that is not historical in nature. The inclusion of
such statements should not be regarded as a representation that such plans,
estimates or expectations will be achieved. There is no assurance that
the potential transactions will be consummated on the terms described herein,
or at all. There are a number of risks and uncertainties that could cause
actual results to differ materially from the forward-looking statements
made herein. These risks and uncertainties include (a) the timing to consummate
the proposed sales, (b) the ability and timing to obtain required regulatory
approvals (including approval from gaming regulators and expiration of
the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act
of 1976) and satisfy or waive other closing conditions; (d) our ability
to identify and execute acquisition and investment opportunities; and (e)
the risk factors disclosed in Eldorado’s most recent Annual Report on Form
10-K and other filings with the Securities and Exchange Commission. Forward-looking
statements reflect the analysis of our management as of the date of this
release. We undertake no obligations to revise these statements to reflect
subsequent developments, except as required under the federal securities
laws. Readers are cautioned not to place undue reliance on any of these
forward-looking statements.
Contacts:
Eldorado
Resorts, Inc.
Thomas
Reeg, 775-328-0112
President
or
JCIR
Joseph
N. Jaffoni, James Leahy
212-835-8500
eri@jcir.com |