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.
Further information about Full House Resorts can be viewed on its
website at www.fullhouseresorts.com.
Forward-looking Statements
Some of the statements made in this release are forward-looking
statements. These forward-looking statements are based upon Full House’s
current expectations and projections about future events and generally
relate to Full House’s plans, objectives and expectations for Full
House’s business. Although Full House’s management believes that the
plans and objectives expressed in these forward-looking statements are
reasonable, the outcome of such plans, objectives and expectations
involve risks and uncertainties including without limitation, regulatory
approvals, including the ability to maintain a gaming license in
Indiana, Nevada and Mississippi, financing sources and terms,
integration of acquisitions, competition and business conditions in the
gaming industry, including competition from Ohio casinos and any
possible authorization of gaming in Kentucky. Additional information
concerning potential factors that could affect Full House’s financial
condition and results of operations is included in the reports Full
House files with the Securities and Exchange Commission, including, but
not limited to, its Form 10-K for the most recently ended fiscal year.
Copyright Business Wire 2013