Peninsula Gaming Sold For $1.45 Billion

By: KAKE News Email
By: KAKE News Email

Stay up-to-date with KAKE News:

Wednesday, May 16, 2012

The parent company of a Kansas state-owned casino has been sold to Boyd Gaming Corporation.

The $1.45 billion sale includes the Kansas Star Casino in Mulvane;
Diamond Jo Casino in Dubuque, Iowa; Diamond Jo Worth in Northwood, Iowa; Evangeline Downs Racetrack & Casino in Opelousas, Louisiana; and Amelia Belle Casino in Amelia, Louisiana.

The purchase price represents an annualized run-rate for Kansas Star based on its first-quarter 2012 EBITDA of $26.8 million, and corporate expense of $10 million.

Ken Smith, President and Chief Executive Officer of Boyd Gaming, said the acquisition will diversify the company's platform.

"The Peninsula properties are a strong fit for us, as they are well-managed and operate in resilient markets in the Midwest and South," Smith said.

The Company has obtained committed financing for the entire transaction. Boyd Gaming will fund the transaction with $200 million in cash and approximately $1.2 billion in debt at the Peninsula subsidiary. In addition, a note provided by the seller of approximately $144 million will be part of the consideration.

Under the terms of the transaction, Boyd Gaming is obligated to make an additional payment in 2016 should Kansas Star's EBITDA exceed $105 million in 2015. The additional payment would be 7.5 times additional EBITDA over $105 million.

Boyd Gaming expects the transaction to close by the end of 2012.


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
KAKE TV 1500 N. West Street Wichita, KS 67203-1323 (316) 943-4221
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 151777705 - kake.com/a?a=151777705
Gray Television, Inc.