Operator News
US – Shareholders at Eldorado and Isle of Capri approve merger deal
By Phil - 26 January 2017
Eldorado Resorts and Isle of Capri Casinos have announced that, at separate Special Meetings of Shareholders today, their respective shareholders approved certain actions in connection with Eldorado’s acquisition of Isle of Capri.
The deal was announced as a definitive merger in September last year and represented a total cost of $1.7bn, inclusive of $929m of long-term debt of Isle of Capri and its subsidiaries. Eldorado Resorts currently operates seven casinos whilst Isle of Capri Casinos runs 14.
The transaction is expected to be consummated in the second quarter of 2017 and remains subject to the approval of applicable gaming authorities, and other customary closing conditions.
Holders of over 99 per cent of the Eldorado shares that voted on the issuance of shares of Eldorado common stock in the merger cast their votes in favour, representing approximately 85 per cent of Eldorado’s outstanding common stock as of the record date for the shareholder meeting. Holders of over 99 per cent of the Isle shares that voted on the merger cast their votes in favour, representing approximately 84 per cent of Isle’s outstanding common stock as of the record date for the shareholder meeting. Both Eldorado and Isle will file a Current Report on Form 8-K with the respective final results of the votes. Eldorado and Isle shareholders also approved each of the other matters on their respective meeting agendas including the Isle shareholders’ approval, on an advisory basis, of certain payments to Isle’s executive officers in connection with the merger.
Gary Carano, Chairman and Chief Executive Officer of Eldorado, said: “The acquisition of Isle of Capri represents a significant milestone in our long-term strategy to expand our regional gaming platform through accretive acquisitions. Upon completion of the transaction we will substantially increase the scale of our gaming operations and further diversify the geographic reach of Eldorado. After giving effect to the planned dispositions of Isle of Capri Casino Hotel Lake Charles and Lady Luck Casino Marquette, the combined operations of Eldorado and Isle will feature approximately 20,290 slot machines and VLTs, more than 550 table games and over 6,550 hotel rooms in ten states. The transaction is expected to be immediately accretive to our free cash flow and diluted earnings per share, inclusive of identified cost synergies of approximately $35 million expected in the first year following the completion of the transaction.
“Since entering into the agreement, we have made progress towards the completion of the transaction including dialogue and meetings with gaming regulators and the development of detailed plans to optimize the operations of the combined company’s properties. We expect that our planned initiatives to implement our margin enhancement strategies across the Isle of Capri property portfolio while elevating the customer experience by marrying best practices from both companies will position Eldorado for near and long-term success.”
Eric Hausler, Chief Executive Officer of Isle of Capri, added:”Today’s vote is an important step towards providing Isle of Capri shareholders with substantial and immediate value, as well as the opportunity to participate in the upside potential of the combined company through the transaction with Eldorado. I believe Eldorado has a solid plan in place to quickly integrate the two companies and I look forward to working closely with the Eldorado team to bring our companies together to realize the benefits of this compelling combination and ensure a smooth transition.”
