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March 28, 2014

Full House Pays $62M for Metro Memphis Casino

By Eliza Theiss, Associate Editor

Full House Resorts Inc. announced it has entered into a definitive agreement with The Majestic Star Casino LLC to purchase Fitzgerald’s Casino for $62 million. The regional casino-gaming company, which is oriented toward serving local populations,  stated it will implement $7 million worth of renovations at the Tunica, Miss. property.

Fitzgerald's Casino

Fitzgerald’s Casino

The buyer will finance the acquisition and renovations with a combination of proceeds obtained from the refinancing of its existing credit facilities with a new $125 million credit facility, and from equity offering.

Full House will pay $62 million for all the outstanding membership interests of The Majestic Star Casino, the entity operating the facility. The price is exclusive of working capital and other adjustments, fees and expenses.

Located in the Memphis Metropolitan Area, the Fitz Casino,  commonly known as the Fitz Casino, comprises a 506-key hotel with 68 suites, and a 38,000-square-foot gaming facility with over 1,100 video poker and slot machines and 24 table games. Sprawling on a 53-acre site with views of the Mississippi River, the Fitz Casino features amenities such as 8,100 square feet of multi-purpose event space, with the largest facility offering 7,500 square feet of meeting space, indoor pool and Jacuzzi, fitness center, two casino bars, a fine dining restaurant, quick service restaurant and a buffet.

The Fitz Casino’s 250-mile radius catchment area houses a population of $14 million, with Memphis being its most significant market. According to a news release, the casino generated an unaudited EBITDA of about $10.1 million for the 2013 fiscal year. “This property fits our acquisition strategy perfectly,” said Full House Chairman and CEO Andre M. Hilliou, adding, that “the property has historically been well run and maintained under the current management team, however we believe that we can (…) further improve the profitability of the Fitz casino.”

Full House tapped Macquarie Capital to serve as financial advisor on the acquisition, which is expected to close in the third quarter of 2014.

Image via the Fitz CasinoTunica Facebook page

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