LAS VEGAS, April 21, 2016-- Boyd Gaming Corporation ("Boyd Gaming") (NYSE: BYD) announced that it has entered into a definitive agreement to acquire ALST Casino Holdco, LLC, the holding company of Aliante Casino Hotel and Spa ("Aliante"), for total net cash consideration of $380 million.
Opened in 2008 at a cost of more than $660 million, Aliante is an upscale, resort-style casino and hotel offering premium accommodations, gaming, dining, entertainment and retail. Strategically located on the 215 Beltway within the master-planned community of Aliante, the property is well-positioned to benefit from future planned development throughout the city of North Las Vegas.
"Aliante is an asset without rival in the North Las Vegas market, strategically positioned to benefit from substantial future growth across the northern part of the Las Vegas Valley," said Keith Smith, President and Chief Executive Officer of Boyd Gaming. "With significant residential and industrial developments moving forward in the area, Aliante's long-term potential is compelling. In addition, there are significant synergy opportunities at the property, allowing us to immediately improve its operating and financial performance. This acquisition will further strengthen and diversify our robust Las Vegas portfolio, the fastest-growing segment of our business."
Aliante Chief Executive Officer Soohyung Kim said, "It has been an honor to be part of the rebirth of Aliante Casino from a difficult restructuring to this excellent outcome for all stakeholders. We recognize that it would not have been possible but for the dedication of each and every team member, led by Terry Downey. These efforts have resulted in Aliante becoming the leader in our market. We are confident that Boyd Gaming will take Aliante to the next level and help it fulfill its ultimate potential. The future of North Las Vegas is brighter than ever, and we expect that Aliante will continue to be mainstay of our community."
Aliante is the premier gaming asset in North Las Vegas, featuring an 82,000-square-foot gaming floor and more than 200 luxury hotel rooms and suites. The property's upscale amenities include five signature restaurants, an ultra-modern, 170-seat race and sports book, a 16-screen movie theater complex, 14,000 square feet of event and banquet space, a luxury spa and an expansive, resort-style pool and outdoor lounge area. Aliante is situated on approximately 40 acres within the 1,905-acre Aliante master-planned community, and is adjacent to an 18-hole championship golf course.
Aliante will be Boyd Gaming's first property in North Las Vegas, and its 10th property in southern Nevada, one of the fastest-growing gaming markets in the United States. The Company's current Nevada portfolio includes The Orleans and Gold Coast, both located just west of the Las Vegas Strip; Suncoast, located just south of the master-planned community of Summerlin in northwest Las Vegas; Sam's Town, on the east side of Las Vegas on Boulder Highway; Eldorado and Jokers Wild, both located in Henderson; and California Hotel and Casino, Fremont Hotel and Casino, and Main Street Station, all in downtown Las Vegas.
The Company expects the transaction to be cash flow positive and accretive to earnings per share during its first full year of ownership.
The transaction is expected to close during the third quarter, subject to the satisfaction of customary closing conditions and the receipt of all required regulatory approvals, including approval by the Nevada Gaming Commission and the Federal Trade Commission. The transaction will be funded with cash on hand.
Morrison & Foerster LLP served as legal advisor to Boyd Gaming for the transaction. Akin Gump Strauss Hauer & Feld LLP served as legal advisor and Houlihan Lokey served as financial advisor to Aliante.
Boyd Gaming will host a conference call to discuss the transaction today, April 21, at 5:00 p.m. Eastern. The conference call number is (888) 317-6003, passcode 8970354. Please call up to 15 minutes in advance to ensure you are connected prior to the start of the call.
The conference call will also be available at www.boydgaming.com, or at: https://www.webcaster4.com/Webcast/Page/964/14826
Following the call's completion, a replay will be available by dialing (877) 344-7529 today, April 21, beginning at 7:00 p.m. Eastern and continuing through Friday, April 29, at 11:59 p.m. Eastern. The conference number for the replay will be 10085163. The replay will also be available at www.boydgaming.com.
The Company will also provide a presentation detailing the transaction at: http://boydgaming.investorroom.com.