Lakes Entertainment Inc.'s Rocky Gap Casino finally completed its $341 million merger with Sartini Gaming Inc.'s Golden Gaming. The multimillion acquisition came after the shareholders approved the deal on Monday.
The merger, which was first announced in January, combined Rocky Gap Casino with Sartini's 48 slots tavern, slots route operation and three Pahrump, Nevada casinos. According to The Baltimore Sun, the slots route also includes 7,100 machines at 670 stores, travel centers and other locations in Nevada.
The Rocky Gap and Golden Gaming merger will be under the combined company called Golden Entertainment Inc. and will be headquartered in Las Vegas.
The once-troubled state-owned resort, Rocky Gap Casino, became Lakes Entertainment Inc.'s principal asset after its $6.8 million acquisition in 2012. In 2013, Lakes opened a $35 million casino in the resort that once housed its conference center. It has about 600 slot machines and 17 table games. During the first half of the year, it generated $22.1 million in revenue.
"With Golden Entertainment, we now have a national, diversified gaming company with strong assets across the country," Golden Entertainment's newly appointed president, chairman and CEO Blake L. Sartini said. "And with this infrastructure, we look forward to further enhancing our unique blend of distributed gaming, casinos and taverns."
The Sartini family, on the other hand, controls the Sartini Gaming and is receiving a 35 percent stake in the combined company while Lakes shareholders retain the balance. The deal also refinances the companies' debt with a new $160 million credit facility.
"Our cash along with the Rocky Gap Casino, when combined with the diverse operations of Golden Gaming, provides an exciting growth opportunity for our existing and future shareholders," former Lakes Entertainment chairman Lyle Bernan said, Baltimore Business Journal noted. "The combined company's refinanced debt will provide an immediate benefit in company net income and free cash flow."
Aside from the Rocky Gap merger, Golden Entertainment also announced the closing of a $160 million credit agreement, which includes a $120 million loan that was fully drawn at closing, Las Vegas Review Journal has learned. A $40 million revolving credit line was also announced and $25 million of which was drawn at closing. Golden Entertainment has $145 million of long-term debt.
In conjunction with the Rocky Gap Casino deal, Golden Entertainment also refinanced its outstanding debt, as per CBS Las Vegas. Meanwhile, Sartini will chair Golden Entertainment's board. The company announced three new board members Monday including Gaming Control Board former chairman Nevada State Sen. Mark Lipparelli, American Gaming Systems and Alliance Gaming former CEO Robert Miodunski and majority owner of Westcor Land Title Insurance Co majority owner Terrence Wright.
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