Affinity selling three of four Northern Nevada casinos
8 September 2012
Affinity Gaming LLC of Las Vegas said Friday it's selling three of its four Northern Nevada casinos for $19.2 million.
The company is not selling its Rail City casino in Sparks, which has been a strong financial performer, said Chief Financial Officer J. Christopher Krabiel.
"It's a good locals property. It's not for sale," he said.
The $19.2 million price is subject to customary adjustments, and the deal will need the approval of gaming regulators.
The buyer is Truckee Gaming LLC, which is led by Affinity Chief Operating Officer Ferenc Szony. He'll be leaving Affinity to run Truckee.
Szony was CEO of the Sands Regency from 1997 until it was purchased by Herbst Gaming in 2007, when he became president of Herbst. Herbst ended up in bankruptcy in 2009, and Affinity is its successor company.
Even though Affinity has a deal with Truckee, it's giving other potential buyers an opportunity to bid for the three properties through Sept. 30.
''This transaction represents the substantial completion of our divestiture of noncore assets, which we identified nearly two years ago and which we carved out of our recently completed refinancing,'' Affinity CEO David Ross said in a statement. ''With this sale, we are able to focus management’s time on executing our long-term growth and expansion strategy and delivering the greatest value to our shareholders.''
Affinity is known in Las Vegas for its Terrible's hotel-casino on Flamingo Road and its complex of three casinos in Primm on Interstate 15 at the California border. It also has properties in Colorado, Iowa and Missouri.
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