Lakes Entertainment Enters Credit Agreement
Lakes Entertainment Inc. said Friday it plans to enter a $105 million credit agreement to pay off loans and finance its casino-development projects. It also said it no longer plans to reduce its stake in the local parent of the World Poker Tour.
Lakes Entertainment holds a 62 percent stake in Los Angeles-based WPT Enterprises Inc., which produces the World Poker Tour.
"While we are allowed to sell up to 3 million shares of WPT Enterprises Inc. under the BAS credit agreement, we are no longer actively pursuing a sale of such shares," Lakes Entertainment President and CEO Tim Cope said in a statement. "We will, however, explore additional financing alternatives to fund future operations and development costs as needed."
The Minnetonka, Minn.-based company said it will use $25 million of its new credit facility to pay off an existing credit facility from an affiliate of Prentice Capital Management, $22.5 million to fund its remaining obligation to the Pokagon Band of Potawatomi Indians in Michigan, and the rest to move forward with its other casino-development deals and for working capital purposes.
Lakes Entertainment has development and management agreements with five separate Indian tribes for a total of eight new casino operations in California, Michigan and Oklahoma. The company also plans to open a company-owned casino in Vicksburg, Miss.
June 17, 2006
Posted By Skip Davis
Staff Editor, CasinoGamblingWeb.com
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