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Isle of Capri Casinos to sell Casino Hotel Lake Charles in $134.5m deal

Staff Writer | August 22, 2016
Isle of Capri Casinos will sell the Isle of Capri Casino Hotel Lake Charles to an affiliate of Laguna Development Corporation, a Pueblo of Laguna-owned business based in Albuquerque, New Mexico.
Lake Charles
Acquisition   Laguna Development to buy a hotel
Under the terms of the agreement, Kicks Entertainment, a newly formed entity owned by LDC and Eagle Holdings, will purchase Isle of Capri Casino Hotel Lake Charles for cash consideration of approximately $134.5 million, which represents 7.8x fiscal 2016 Adjusted EBITDA, subject to a customary working capital adjustment.

On a pro forma basis, the company expects the transaction to increase Adjusted EBITDA margins, while further deleveraging its balance sheet.

Following the completion of the sale, Isle of Capri Casinos to use the cash proceeds we receive from this transaction to reduce debt and for other corporate purposes.