Black Hawk Gaming & Development Company Announces Closing of Casino Acquisition.BOULDER, Colo.--(BUSINESS WIRE)--April 27, 1998--Black Hawk Gaming & Development Company, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : NMS See NetWare Management System. : BHWK), owner and operator of the Gilpin Hotel Casino and majority owner of the Lodge Casino at Black Hawk Black Hawk (born 1767, Sauk Sautenuk, Va.—died Oct. 3, 1838, village on the Des Moines River, Iowa, U.S.) Sauk Indian leader. Long antagonistic to whites, Black Hawk was driven into Iowa from Illinois in 1831. , today announced the closing of the purchase of Gilpin Venture Inc.'s (GVI GVI Global Vision International (UK) GVI Giga Virtual Instrument GVI Global Vegetation Index GVI Google Videos (file extension) GVI Georgia Ventures Inc. ) interests in the Gilpin Hotel Venture. The company has acquired the 50 percent of the Gilpin Hotel Venture that it did not previously own, in a transaction structured as a stock purchase. Under terms of the transaction, as described in a definitive agreement signed Dec. 31, 1997, Black Hawk Gaming has acquired 100 percent of the shares of GVI for $5 million, representing the purchase of all of GVI's interest in the business, building and personal property of the Gilpin Hotel Venture. An additional $5 million was paid to affiliates of GVI for their 50 percent ownership of the real property of the Gilpin Hotel Venture and for the termination of a consulting agreement. Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Bank, N.A., provided financing for the transaction, to be included in a five-year, $20 million revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. . The rate on the line of credit is 75 basis points above the prime rate (approximately 9.5 percent). Black Hawk Gaming applied $10 million of the proceeds to the GVI acquisition, approximately $5 million to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. existing debt and the remaining $5 million for working capital. Approximately one-half of the working capital will be used to complete construction of an above-ground parking structure, that will provide parking for the Gilpin Hotel Casino. Jeffrey P. Jacobs, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Black Hawk Gaming, commented, "The closing of this transaction, under the direction of Black Hawk's president Stephen R. Roark, is the first of two significant events for the company near-term. We expect this acquisition to enhance our bottom line, and our 100 percent ownership of the Gilpin will enable us to consolidate our financial statements. Consolidation of our financial results will make it easier for the investment community to compare Black Hawk Gaming with others in the industry, and I am confident they will conclude that we have a very efficient operating company operating company A business that engages in transactions with outsiders. . "Secondly, the upcoming opening of the Lodge Casino at Black Hawk is a very important event for us. This $72 million project is designed to accommodate 800 slot machines, 20 table games, three restaurants, 50 hotel rooms and more than 700 parking spaces. We are also providing additional access into the main gaming district of Black Hawk off State Highway 119, which is the primary access from the Denver metropolitan area." Jacobs added, "We expect to open the Lodge May 30, 1998, on schedule and on budget, reflecting the success of our construction and development efforts under the direction of Jacobs Entertainment's vice president David C. Grunenwald and our dedicated management team. We continue to pursue growth opportunities beyond the Gilpin and the Lodge, and as we have stated before, we will grow at a controlled pace, carefully identifying acceptable projects for consideration." -0- This press release contains statements of a forward-looking nature regarding future events. These statements are only predictions and actual events may differ materially. Please refer to documents that Black Hawk files from time to time with the Securities and Exchange Commission for a discussion of certain factors that could cause actual results to differ materially from those contained in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . CONTACT: Black Hawk Gaming & Development Company, Inc., Boulder Stan Politano (303) 216-0908 OR Porter, LeVay & Rose, Inc. L. B. Stauffer John Chuhran, Media Consultant (212) 564-4700 |
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