LAS VEGAS, April 21, 2016 /PRNewswire/ -- Boyd Gaming
Corporation ("Boyd Gaming") (NYSE: BYD) today announced that it has
entered into a definitive agreement to acquire ALST Casino Holdco,
LLC, the holding company of Aliante Casino Hotel and Spa
("Aliante"), for total net cash consideration of $380 million.
Opened in 2008 at a cost of more than $660 million, Aliante is an upscale, resort-style
casino and hotel offering premium accommodations, gaming, dining,
entertainment and retail. Strategically located on the 215
Beltway within the master-planned community of Aliante, the
property is well-positioned to benefit from future planned
development throughout the city of North
Las Vegas.
"Aliante is an asset without rival in the North Las Vegas market, strategically
positioned to benefit from substantial future growth across the
northern part of the Las Vegas Valley," said Keith Smith, President and Chief Executive
Officer of Boyd Gaming. "With significant residential and
industrial developments moving forward in the area, Aliante's
long-term potential is compelling. In addition, there are
significant synergy opportunities at the property, allowing us to
immediately improve its operating and financial performance. This
acquisition will further strengthen and diversify our robust
Las Vegas portfolio, the
fastest-growing segment of our business."
Aliante Chief Executive Officer Soohyung
Kim said, "It has been an honor to be part of the rebirth of
Aliante Casino from a difficult restructuring to this excellent
outcome for all stakeholders. We recognize that it would not
have been possible but for the dedication of each and every team
member, led by Terry Downey.
These efforts have resulted in Aliante becoming the leader in our
market. We are confident that Boyd Gaming will take Aliante
to the next level and help it fulfill its ultimate potential.
The future of North Las Vegas is
brighter than ever, and we expect that Aliante will continue to be
mainstay of our community."
Aliante is the premier gaming asset in North Las Vegas, featuring an
82,000-square-foot gaming floor and more than 200 luxury hotel
rooms and suites. The property's upscale amenities include five
signature restaurants, an ultra-modern, 170-seat race and sports
book, a 16-screen movie theater complex, 14,000 square feet of
event and banquet space, a luxury spa and an expansive,
resort-style pool and outdoor lounge area. Aliante is
situated on approximately 40 acres within the 1,905-acre Aliante
master-planned community, and is adjacent to an 18-hole
championship golf course.
Aliante will be Boyd Gaming's first property in North Las Vegas, and its 10th
property in southern Nevada, one
of the fastest-growing gaming markets in the United States.
The Company's current Nevada
portfolio includes The Orleans and Gold
Coast, both located just west of the Las Vegas Strip;
Suncoast, located just south of the master-planned community of
Summerlin in northwest Las Vegas;
Sam's Town, on the east side of Las
Vegas on Boulder Highway; Eldorado and Jokers Wild, both
located in Henderson; and
California Hotel and Casino, Fremont Hotel and Casino, and Main
Street Station, all in downtown Las
Vegas.
The Company expects the transaction to be cash flow positive and
accretive to earnings per share during its first full year of
ownership.
The transaction is expected to close during the third quarter,
subject to the satisfaction of customary closing conditions and the
receipt of all required regulatory approvals, including approval by
the Nevada Gaming Commission and the Federal Trade Commission. The
transaction will be funded with cash on hand.
Morrison & Foerster LLP served as legal advisor to Boyd
Gaming for the transaction. Akin Gump Strauss Hauer & Feld LLP
served as legal advisor and Houlihan
Lokey served as financial advisor to Aliante.
Boyd Gaming will host a conference call to discuss the
transaction today, April 21, at
5:00 p.m. Eastern. The
conference call number is (888) 317-6003, passcode
8970354. Please call up to 15 minutes in advance to
ensure you are connected prior to the start of the call.
The conference call will also be available at
www.boydgaming.com, or at:
https://www.webcaster4.com/Webcast/Page/964/14826
Following the call's completion, a replay will be available by
dialing (877) 344-7529 today, April
21, beginning at 7:00 p.m.
Eastern and continuing through Friday, April
29, at 11:59 p.m.
Eastern. The conference number for the replay will be
10085163. The replay will also be available at
www.boydgaming.com.
The Company will also provide a presentation detailing the
transaction at: http://boydgaming.investorroom.com.
About Boyd Gaming
Headquartered in Las Vegas,
Boyd Gaming Corporation (NYSE: BYD) is a leading diversified
owner and operator of 22 gaming entertainment properties located in
Nevada, Illinois, Indiana, Iowa, Kansas,
Louisiana, Mississippi and New
Jersey. Boyd Gaming press releases are available at
www.prnewswire.com. Additional news and information on Boyd
Gaming can be found at www.boydgaming.com.
About Aliante
ALST Casino Holdco, LLC ("ALST") was formed in 2011 to acquire
the equity interests of Aliante Gaming, LLC ("AG LLC") under a
joint plan of reorganization under Chapter 11 of the United States
Bankruptcy Code. AG LLC is the owner and operator of the
Aliante Casino + Hotel + Spa (the "Hotel"), located within the
Aliante master-planned community in the City of North Las Vegas. The Hotel features a
full-service Scottsdale-modern, desert-inspired casino and resort
with more than 200 luxury hotel rooms and suites and approximately
82,000 square feet of gaming space, including slot machines, gaming
tables, a bingo room and a 170 seat race and sports book. The
Hotel's non-gaming amenities include a 16-screen movie theater
complex, a 650-seat showroom, an entertainment lounge, a spa and a
resort style pool and six full-service restaurants and 14,000
square feet of event space. Aliante is situated on approximately 40
acres within the 1,905-acre Aliante master-planned community, and
is adjacent to an 18-hole championship golf course. Additional news
and information on Aliante can be found at
www.aliantegaming.com.
Forward-looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended. Such statements contain words such as "may,"
"will," "might," "expect," "believe," "anticipate," "could,"
"would," "estimate," "continue," "pursue," or the negative thereof
or comparable terminology, and include (without limitation)
statements regarding the transactions contemplated by the
definitive agreement, Boyd Gaming's expectations regarding the
timing of closing, the potential benefits to be achieved from the
acquisition of the Aliante business, including the potential
long-term growth of Aliante and benefits from the development of
the area in which Aliante is located, expectations regarding timing
for Aliante to be cash flow positive and accretive to Boyd Gaming's
earnings, the expected cost synergies at the property, and any
statements or assumptions underlying any of the foregoing.
These forward-looking statements are based upon the current beliefs
and expectations of management and involve certain risks and
uncertainties, including (without limitation) the possibility that
the transactions contemplated by the definitive agreement will not
close on the expected terms (or at all), or that Boyd Gaming is
unable to successfully integrate the acquired assets or realize the
expected synergies or that the properties will be cash flow
positive or accretive to Boyd Gaming's earnings as anticipated;
litigation, antitrust matters or the satisfaction or waiver of any
of the closing conditions that could delay or prevent the closing;
and changes to the financial conditions of the parties, or the
credit markets, or the economic conditions in the areas in which
they operate. Additional factors are discussed in "Risk Factors" in
Boyd Gaming's Annual Report on Form 10-K for the year ended
December 31, 2015, and in Boyd
Gaming's other current and periodic reports filed from time to time
with the Securities and Exchange Commission. All
forward-looking statements in this press release are made as of the
date hereof, based on information available to Boyd Gaming as of
the date hereof, and Boyd Gaming assumes no obligation to update
any forward-looking statement.
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SOURCE Boyd Gaming Corporation