Isle of Capri Casinos, Inc. announced that it has entered right 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 roughly $134.5 million, which represents 7.8x fiscal 2016 Adjusted EBITDA, subject to a typical working capital adjustment.

Eric Hausler, chief executive officer of Isle of Capri Casinos, commented, "This transaction provides us with a possibility to unlock significant value for our shareholders.  On a professional forma basis, we predict the transaction to extend Adjusted EBITDA margins, while further deleveraging our balance sheet. Following the completion of the sale, we intend to make use of the money proceeds we receive from this transaction to scale back debt and for other corporate purposes.

"We have enjoyed owning and operating Isle of Capri Casino Hotel Lake Charles for greater than 20 years, and we appreciate the labor 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 good experiences they've come to expect from Isle of Capri Casino Hotel Lake Charles."

Isle of Capri Casino Hotel Lake Charles can be accounted for as discontinued operations beginning within the fiscal 2017 second quarter.  The sale is predicted to near 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, in addition to customary closing conditions.

Read More... [Source: Gaming Industry News]