Elsinore Corp. Announces Intent to Sell Four Queens Hotel & Casino.Business Editors LAS VEGAS--(BUSINESS WIRE)--March 9, 2000 Elsinore Corp. announced that on March 6, 2000, it signed a nonbinding letter of intent with PDS (1) (Processor Direct Slot) A single expansion slot on certain, early Macintosh models that was used to connect high-speed peripherals as well as additional CPUs. Providing a channel directly to the CPU, the PDS coexisted with NuBus slots on some models. Financial Corp. for the sale of the capital stock of Elsinore's wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Four Queens Inc., a Nevada corporation doing business as the Four Queens Hotel & Casino, for a purchase price of $30 million, subject to adjustment. The Four Queens Hotel & Casino constitutes substantially all of the operating assets Operating Assets Another term for working capital. of Elsinore. Elsinore holds certain non-operating assets, which are not subject to the transaction with PDS Financial. At Dec. 31, 1999, the outstanding long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. of Elsinore (not including debt at the Four Queens level) was $12.0 million (including the current portion thereof), and Elsinore had outstanding approximately 50 million shares of 6% cumulative convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , with a liquidation preference of $19.4 million, including accumulated dividends. Consummation of the acquisition is subject to a number of conditions, including due diligence review, negotiation and execution of a definitive purchase agreement, receipt of required regulatory approvals, including approval of the Nevada Gaming Commission The Nevada Gaming Commission is a Nevada state governmental agency involved in the regulation of casinos throughout the state, along with the Nevada Gaming Control Board. It was founded in 1959 by the Nevada Legislature. , other gaming approvals and, if necessary, approval under the Hart-Scott-Rodino Antitrust Act, and receipt by PDS of satisfactory purchase financing. There can be no assurance that a definitive agreement can be reached, that the other conditions to the acquisition will be satisfied or that the acquisition will be consummated. Statements made in this news release, including those relating to the consummation of the acquisition, are forward looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve risks and uncertainties that may cause results to differ materially from those set forth in these statements. Among these risks and uncertainties are whether or not the conditions to closing of the transaction will be satisfied. Other factors identified by Elsinore in its filings with the Securities and Exchange Commission, including Elsinore's Form 10-K for the year ended Dec. 31, 1998, could affect the forward-looking statements contained in this news release. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion