VegasInc Coverage
Affinity Gaming LLC of Las Vegas today said the three casinos it’s purchasing in Black Hawk, Colo., are valued at between $76.2 million and $92.3 million.
That and other pricing information was disclosed one day after Affinity announced deals to sell its Nevada slot machine route and casinos in Pahrump and Searchlight – and to pick up the three Colorado properties.
Affinity is the lender-created company that obtained the assets of the old Herbst Gaming out of bankruptcy.
Affinity is selling to Golden Gaming Inc. the bulk of its Nevada slot route plus its Terrible’s Town Casino and its Terrible’s Lakeside Casino & RV Park in Pahrump.
Golden Gaming will assume certain liabilities related to the Pahrump casinos and the slot route. The assets purchased will include $23.75 million in cash used to operate the slot route.
Affinity is buying from Golden Gaming three properties in Black Hawk, Colo.: The Golden Mardi Gras Casino, Golden Gates Casino and Golden Gulch Casino.
These properties have more than 1,780 slot and video poker machines plus table games and amenities such as bars and restaurants.
"A purchase price adjustment will be payable under the Golden agreements based on the relative values at closing of the Pahrump casinos and slot route, on the one hand, and the Black Hawk casinos, on the other hand,’’ Affinity Gaming said in a regulatory filing today.
The value of the Pahrump casinos and slot route will be determined based on a multiple of the trailing 12 months EBITDA of the Pahrump casinos and slot route.
EBITDA is a profitability measure meaning earnings before interest, taxes, depreciation and amortization.
That valuation is between $71.9 million and $87 million, Affinity Gaming said.
The value of the Black Hawk Casinos will similarly be determined based on a multiple of their trailing 12 months EBITDA, with that valuation at a minimum being $76.2 million and at most $92.3 million, Affinity said.
The party that purchases the business with the higher valuation will be required to pay cash to the other party to cover the difference between the two valuations, Affinity said, adding the deals is subject to customary closing conditions.
As for the sale of parts of its slot route and its Searchlight casino to the Herbst family, Affinity today didn’t disclose the sales price.
Affinity’s largest operation is its complex of three hotel-casinos in Primm at I-15 on the Nevada/California border.
It also has the Terrible’s hotel-casino in Las Vegas and properties in Henderson, Northern Nevada, Missouri and Iowa.