We are very pleased that the bidding process is complete and we are looking forward to the sale hearing date this Friday. We are currently in the process of acquiring the gaming and liquor board licenses for these properties and hope to close the deal on most of the casinos within 30-60 days," said Robert Sturges, CEO of Nevada Gold.
"We expect that we will be acquiring these mini-casinos at an effective EBITDA multiple of between three and four times and believe that we will be able to significantly leverage our existing Washington infrastructure to seamlessly integrate these new acquisitions. The recent trends for our existing three mini-casinos in Washington have performed above our expectations for calendar year 2010 to date. We expect to put the know-how and experience we have gained so far in Washington to good use in the operation of the Evergreen mini-casinos," Sturges concluded.
The casinos are currently owned by subsidiaries of Evergreen Gaming Corporation, a British Columbia corporation, which is under bankruptcy court protection due to a burdensome debt structure. The transaction will be financed by cash on hand as well as a us$ 5.1 million note issued to Evergreen's current senior lender.
The seven casinos are The Silver Dollar Seatac, The Silver Dollar Renton, The Silver Dollar Mill Creek, The Silver Dollar Tukwila, Club Hollywood, located in Shoreline, the Royal Casino located in Everett and The Golden Nugget Casino located in Tukwila. All of the casinos are located in western Washington. Combined, the seven facilities have a total of approximately 100 table games including blackjack, Spanish 21 and other popular banked table games.
Closing of the acquisition is subject to other customary closing conditions, including licensing, necessary lease transfers and final bankruptcy court approval, among other conditions.