Full House Resorts (NYSE Amex US: FLL) announced today that it has obtained financing commitments for new credit facilities totaling $75 million which will be used to fund the Company’s acquisition of the Silver Slipper Casino in Hancock County, Mississippi.
The financing will consist of a $55 million first lien credit facility and a $20 million second lien facility. Capital One N.A. will serve as administrative agent for the first lien facility and Summit Partners Credit Advisors, L.P. will act as arranger for the second lien facility. The expected weighted average cash interest cost of the facilities will be approximately 8%. The funding of the new credit facilities are subject to documentation and other customary conditions.
The Company, in late March, made a $2.5 million escrow deposit in connection with the pending acquisition of the Silver Slipper Casino. This deposit is non-refundable except for certain customary conditions. The Company is being advised on the acquisition and financing by Macquarie Capital.
“We are pleased that we were able to quickly obtain financing commitments for this acquisition at an attractive overall blended rate, which is a testament to our management team, strong cash flow and balance sheet,” said Andre M. Hilliou, Chairman and Chief Executive Officer of Full House Resorts. “We have already commenced the licensing process in Mississippi, and we expect to close on the acquisition in the third quarter of this year.”The Silver Slipper Casino, which opened in November 2006, has 37,000 square feet of gaming space with almost 1,000 slot and video poker machines, 26 table games, a poker room and the only live Keno game on the Gulf Coast. The property includes a fine dining restaurant, buffet, quick service restaurant and two casino bars. The property draws heavily from the New Orleans metropolitan area and other communities in southern Louisiana and southwestern Mississippi.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV