The Lady Luck operation, right, in a photo from the Iowa Gaming Commission.
Isle of Capri Casinos Inc. has completed a previously announced sale of its Marquette, Iowa, property to an affiliate of Casino Queen in East St. Louis.
Casino Queen is an employee-owned operation represented by parent company, Swansea, Ill., based CQ Holdings Co. Inc.
Under the announced terms of the agreement, CQ Holdings Company, Inc. will purchase Lady Luck Casino Marquette for cash consideration of approximately $40 million subject to a customary working capital adjustment.
CQ will buy the Iowa casino for what represents 7.5 times the trailing 12 months adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) through the first quarter of fiscal 2017, Isle officials said previously.
Isle also announced that it has called for redemption of $50 million aggregate principal amount of its outstanding 5.875 percent senior notes due 2021 at a redemption price of 102.938 percent of the principal amount thereof (or $1,029.38 per $1,000 principal amount of redeemed notes) together with accrued and unpaid interest. The redemption date is April 11, 2017.
The company says it will finance the redemption with proceeds from the sale to Casino Queen, available cash and borrowings under its credit facility. Following the redemption, $450 million aggregate principal amount of notes will remain outstanding.
Isle of Capri operates gaming and entertainment facilities in Mississippi, Louisiana, Iowa, Missouri, Colorado, Florida and Pennsylvania.