Harrah's to Acquire Casino Magic Biloxi
Letter of Intent Includes Sale of Harrah's Lake Charles to Pinnacle Entertainment
LAS VEGAS, NV, APril 18, 2006. Enhancing its ability to pursue long-term growth opportunities on the Gulf Coast, Harrah's Entertainment, Inc. (NYSE:HET) today announced that one of its subsidiaries signed a letter of intent to acquire the remaining assets of Casino Magic Biloxi from Pinnacle Entertainment, Inc. (NYSE:PNK).
The letter of intent also calls for the sale of two Harrah's subsidiaries that own businesses in Lake Charles, La., to a Pinnacle subsidiary.
The letter of intent is non-binding and subject to definitive documentation, as well as the receipt of all required regulatory approvals.
The Casino Magic site, which includes land leased from third parties, covers approximately 18 acres directly east of Harrah's-owned Grand Casino Biloxi.
"We believe in the long-term potential of the Mississippi Gulf Coast, and are looking forward to returning to this vibrant market," said Anthony Sanfilippo, president of Harrah's Central Division. "The site we are acquiring from Pinnacle will give us an even larger footprint in Biloxi, giving us greater flexibility in creating a compelling entertainment experience."
Harrah's plans to re-open Grand Casino Biloxi this summer, the first phase in the company's development plans on the Mississippi Gulf Coast. The Grand Casino will initially reopen with a completely redesigned and renovated 500-room hotel and a 35,000-square-foot casino, as well as a steakhouse, a buffet and a 16,000-square-foot full service spa. The hotel-casino will initially employ more than 1,000 people. Harrah's expects to announce preliminary plans for a destination resort in Biloxi in mid-2006.
Harrah's Lake Charles businesses include the 263-room Lake Front Hotel - currently open and operating - as well as two casino boats.
"As we are focusing our Gulf Coast development efforts on Biloxi and New Orleans, we felt it made sense to sell Harrah's Lake Charles," Sanfilippo said. "It has been a pleasure to be a part of the Lake Charles community, and we look forward to seeing the community thrive as Pinnacle expands its presence there. We remain proud members of the Louisiana business community, from the Horseshoe and Louisiana Downs in Bossier City to the only land-based casino in the state, Harrah's New Orleans. We look forward to continuing to strengthen our presence in Louisiana in the years to come."
Harrah's Entertainment, Inc. is the world's largest provider of branded casino entertainment through operating subsidiaries. Since its beginning in Reno, Nevada 68 years ago, Harrah's has grown through development of new properties, expansions and acquisitions. Harrah's Entertainment is focused on building loyalty and value with its customers through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership.
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