Colorado Casino Sold to Las Vegas Investor
- Oct 05, 2015
Full House Resorts of Las Vegas is buying a casino close to Colorado Springs. The company announced it has entered into a definitive agreement with Topeka, Kan.-based Pioneer Group Inc. to acquire Bronco Billy’s Casino and Hotel in Cripple Creek, Colo., for approximately $30 million.
Located at 233 E. Bennett Ave. about 44 miles of Colorado Springs, Bronco Billy’s Casino features about 830 slot and video poker machines, 13 table games, a 24-key hotel, steakhouse, four casual dining outlets, as well as an outdoor amphitheater. The property was expanded in May this year, adding more slot machines, guest rooms, and additional surface parking to the site.
The purchase is expected to be accretive to Full House Resorts. The $30 million price tag is subject to reduction to $28.5 million if the asset’s Adjusted EBITDA falls below $4.7 million in certain periods prior to closing; Full House may terminate the purchase agreement without penalty, if the Adjusted EBITDA further falls below $4.5 million prior to closing.
“While there is no ‘financing contingency’ in the purchase agreement, we believe the Company’s credit statistics, including the cost of the acquisition, will be within the norm for regional casino companies,” Daniel Lee, president & CEO of Full House Resorts, said in a statement. “While nothing is certain, our bankers have expressed confidence that the Company’s debt can be refinanced, including the entire cost of the acquisition, on terms that are better than the cost of our existing debt.”
Gaming in the state of Colorado is limited to the three historic mining towns of Cripple Creek, Black Hawk, and Central City.
Image courtesy of Bronco Billy’s Casino and Hotel Facebook page