Full House Resorts entered into a definitive agreement to acquire all of the outstanding membership interests of the entity operating the 507-room Fitz Tunica Casino & Hotel from The Majestic Star Casino LLC for US$62 million.
Full House intends to fund the acquisition of the Fitz Casino with a combination of proceeds obtained by refinancing its existing credit facilities with a new credit facility with a capacity of approximately $125 million and through an equity offering. The proceeds will also be used to fund certain required renovations at the property, which are expected to be approximately $7 million. Full House anticipates having financings and required regulatory approvals in place to accommodate closing the acquisition during the third quarter of 2014.
Full House Resorts, Las Vegas, reported that the property had an adjusted EBITDA of US$10.1 million in 2013.
“This property fits our acquisition strategy perfectly,” said Andre Hilliou, chairman and CEO of Full House. “The property has historically been well run and maintained under the current management team; however, we believe that we can leverage our knowledge and proven track record of managing properties catering to local customers in competitive environments to further improve the profitability of the casino-resort.”
