Full House Resorts (NASDAQ:FLL) announced today that it has closed on an amendment to its First Lien Credit Agreement to provide for a $10.0 million loan from its first lien facility lenders, which will be used to fund a portion of the approximate $17.7 million construction of a 142-room hotel at the Company’s Silver Slipper Casino property in Hancock County, Mississippi. The Company also announced that it has signed construction contracts for the hotel with the R.O.I. Hotel Group and expects construction to commence in the next 30 days. The Company expects the remaining $7.7 million of the construction to be funded from available cash. Full House estimates that construction of the hotel will take approximately one year to complete.
The terms and conditions of the amendment to the First Lien Credit Agreement include that (1) the term loan portion of the First Lien Credit Agreement will be increased by $10.0 million; (2) the interest rate will be lowered by 1.0%; (3) the maturity date will be extended to June 29, 2016; and (4) certain financial ratio covenants will be revised to accommodate the additional extension of credit.
“We appreciate the support of both our first lien and second lien lenders and are excited to be moving forward on the Silver Slipper hotel,” said Andre Hilliou, Chairman and Chief Executive Officer of Full House Resorts. “We believe the hotel is a much-needed amenity to extend loyal and profitable customer visits at the Silver Slipper property, and we look forward to celebrating the grand opening of the hotel facility in the second half of 2014.”
About Full House Resorts, Inc.
Full House owns, develops and manages gaming facilities. The Company owns the Rising Star Casino Resort in Rising Sun, Indiana. The Rising Star Casino has 40,000 square feet of gaming space with almost 1,300 slot and video poker machines and 37 table games. The property includes a 190-room hotel, a pavilion with five food and beverage outlets, an 18-hole Scottish links golf course and a large, multi-purpose Grand Theater for concerts and performance events as well as meetings and conventions. The Company acquired the Silver Slipper Casino in Hancock County, Mississippi on October 1, 2012, which 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 Silver Slipper property includes a fine dining restaurant, buffet, quick service restaurant and two casino bars. Full House also owns Stockman’s Casino in Fallon, Nevada and operates the Grand Lodge Casino at Hyatt Regency Lake Tahoe Resort, Spa and Casino in Incline Village, Nevada on the north shore of Lake Tahoe under a lease agreement (expiring on August 31, 2018) with an affiliate of Hyatt Hotels Corporation. In addition, the Company has a management agreement with the Pueblo of Pojoaque for the operations of the Buffalo Thunder Casino and Resort in Santa Fe, New Mexico along with the Pueblo’s Cities of Gold casino facilities.