Changing hands
Changing hands
Isle sells Bossier City, Vicksburg casinos to private company
Biloxi-based Isle of Capri Casinos Inc. has reached an agreement to sell the company's properties in Bossier City, La., and Vicksburg, Miss., to privately owned Legends Gaming LLC for $240 million.
Proceeds from the sale are expected to be used to fund existing development projects and/or pay down debt. The agreement is subject to regulatory approvals and other customary closing conditions. The company expects to complete the transaction in the second or third calendar quarter of 2006.
"We determined that the sale of our Vicksburg and Bossier City properties will allow the Isle to focus on opportunities that more closely match our portfolio and strategic vision," said Timothy Hinkley, Isle president and chief operating officer. "Both of these properties have been a part of the Isle family since the early days, and our team members have been a valuable asset. Over the years, the Vicksburg and Bossier City communities have been good for our industry, and we expect Legends Gaming will be as warmly welcomed as we were."
Legends Gaming LLC was recently formed to own and operate casinos primarily located in regional markets. Legends' principals are expected to be William J. McEnery, chairman; Michael E. Kelly, president and chief executive officer; and G. Dan Marshall, chief operating officer and chief financial officer.
"We are extremely pleased to have entered into this agreement with Isle of Capri and for the opportunity they have provided for Legends to commence casino operations in Louisiana and Mississippi. We look forward to working with team members, gaming regulators and the local Bossier City and Vicksburg communities in an effort to continue to provide a first-class entertainment venue in these markets," McEnery said.
Deutsche Bank gaming analyst Marc Falcone wrote in a note to investors that the move is one of four key points to Isle's overall strategic shift in its business focus that could yield substantial long-term shareholder value. The other key points are fundamental earnings conversion-consistency through better managing its portfolio; higher-quality products-improved assets with better gaming and non-gaming amenities; and a targeted capital expenditure approach-a focus on select assets, which should yield better returns.
"We believe that if management is successful in executing on its new strategic vision, Isle could be rewarded with multiple expansions and could ultimately be worth $35 to $45 per share," Falcone said.
Isle sells Bossier City, Vicksburg casinos to private company
Biloxi-based Isle of Capri Casinos Inc. has reached an agreement to sell the company's properties in Bossier City, La., and Vicksburg, Miss., to privately owned Legends Gaming LLC for $240 million.
Proceeds from the sale are expected to be used to fund existing development projects and/or pay down debt. The agreement is subject to regulatory approvals and other customary closing conditions. The company expects to complete the transaction in the second or third calendar quarter of 2006.
"We determined that the sale of our Vicksburg and Bossier City properties will allow the Isle to focus on opportunities that more closely match our portfolio and strategic vision," said Timothy Hinkley, Isle president and chief operating officer. "Both of these properties have been a part of the Isle family since the early days, and our team members have been a valuable asset. Over the years, the Vicksburg and Bossier City communities have been good for our industry, and we expect Legends Gaming will be as warmly welcomed as we were."
Legends Gaming LLC was recently formed to own and operate casinos primarily located in regional markets. Legends' principals are expected to be William J. McEnery, chairman; Michael E. Kelly, president and chief executive officer; and G. Dan Marshall, chief operating officer and chief financial officer.
"We are extremely pleased to have entered into this agreement with Isle of Capri and for the opportunity they have provided for Legends to commence casino operations in Louisiana and Mississippi. We look forward to working with team members, gaming regulators and the local Bossier City and Vicksburg communities in an effort to continue to provide a first-class entertainment venue in these markets," McEnery said.
Deutsche Bank gaming analyst Marc Falcone wrote in a note to investors that the move is one of four key points to Isle's overall strategic shift in its business focus that could yield substantial long-term shareholder value. The other key points are fundamental earnings conversion-consistency through better managing its portfolio; higher-quality products-improved assets with better gaming and non-gaming amenities; and a targeted capital expenditure approach-a focus on select assets, which should yield better returns.
"We believe that if management is successful in executing on its new strategic vision, Isle could be rewarded with multiple expansions and could ultimately be worth $35 to $45 per share," Falcone said.
