TNA Wake-up Call...(news)
Evergreen Gaming acquires FSSD Holdings
2007-10-02 17:44 ET - News Release
Mr. Clive Forth reports
EVERGREEN GAMING CORPORATION ANNOUNCES CLOSING OF CALGARY CASINO ACQUISITION AND DEBT FINANCING
Evergreen Gaming Corp. has now closed its acquisition of 100 per cent of the shares of FSSD Holdings of Alberta. FSSD is the parent company of Frank Sisson's Silver Dollar Casino and Entertainment Centre located in southeast Calgary, Alta.
The Silver Dollar is a 120,000-square-foot casino and entertainment complex featuring 504 slot machines, 25 video lottery terminals (VLTs), 20 gaming tables, a 38-lane bowling alley, a new 1,200-seat live entertainment and convention facility, and numerous food and beverage outlets located throughout the property. The complex and adjoining parking lots occupy seven acres of land that have also been acquired by Evergreen as part of the transaction.
The acquisition price was $22-million plus warrants for the purchase of 500,000 shares of Evergreen at a price of $1.00 per share, exercisable for a period of five years. Financing for the cash portion of the purchase price was provided by Fortress Credit Corp. of New York. Under the financing arrangements, Evergreen has borrowed $28.25-million (U.S.), which, in addition to financing the acquisition, will be employed to consolidate existing debt and provide working capital. The loan bears interest at an initial rate of London Interbank offered rate plus 6.5 per cent, subject to downward adjustment in the event that Evergreen achieves certain specified leverage ratios and subject to upward adjustment in the event of default. The loan has a term of six years and is secured by fixed and floating charge security over the assets of the company. CIBC World Markets will receive a fee for arranging the loan transaction, in an amount customary for transactions of this nature.
Funded by a well known financial company as well...must have liked TNA's assets.