Spectacle Entertainment to Acquire Majestic Holdco
INDIANAPOLIS--(BUSINESS WIRE)--Nov 28, 2018--Spectacle Entertainment announced today it will merge with Majestic Holdco, LLC (“Majestic Holdco”) in a cash transaction. Previously, Majestic Holdco sold Majestic Mississippi, LLC, the owner and operator of a casino and hotel in Tunica, Mississippi, to Foundation Gaming Group in August 2018.
Majestic Holdco owns the subsidiaries, The Majestic Star Casino, LLC (“Majestic Star”) and The Majestic Star Casino II, LLC, (“Majestic Star II”), both of which are included in the sale. The two subsidiaries own and operate adjacent dockside casino vessels at Buffington Harbor in Gary, Indiana, a 300-room hotel, 2,000-space parking garage, and a pavilion containing land-based restaurants, bars and meeting facilities.
Spectacle Chairman & CEO Rod Ratcliff said, “Spectacle’s acquisition of the two gaming licenses located in Gary presents a tremendous economic opportunity for the City of Gary as well as the State of Indiana. We welcome the prospect of working with Gary and the General Assembly to maximize the value of these two licenses by allowing Buffington Harbor to become part of an intermodal hub, creating additional employment and increasing state and local tax revenues.” Spectacle Vice Chairman Greg Gibson added, “Although my entrepreneurial background has not been in the gaming industry, I am encouraged by what this opportunity means for our State. We can’t stand idle and ignore the competition other states are pursuing; instead we must be timely and nimble. Indiana is home and I want to see it thrive.”
Majestic Holdco CEO Peter Liguori said, “We are delighted with this transaction and believe it is in the best interest of our members, team members and customers. In addition, we are convinced that Spectacle’s ownership will provide the right vision and support to undertake the Company’s next phase of growth.”
The transaction is subject to receipt of regulatory approval and is expected to close in the first quarter of 2019. Barnes & Thornburg, LLP and Chapman & Cutler are acting as Spectacle’s legal advisors; Nomura Securities International is acting as financial advisor to Majestic Holdco; and Taft Stettinius & Hollister LLP (led by Kimberly Copp and Ronan Johnson) is acting as its legal advisor.
About Spectacle Entertainment, LLC
Spectacle is an Indiana company owned and managed by Hoosiers with deep experience in the gaming business. It was formed to acquire Majestic Star and Majestic Star II. Its principal investors are Greg Gibson, a Terre Haute community leader and entrepreneur, and Rod Ratcliff, former Chairman and CEO of Centaur Gaming.
About Majestic Holdco, LLC
Majestic Holdco, LLC is the direct owner of the membership interests of The Majestic Star Casino, LLC, the owner and operator of the Majestic Star Casino, a dockside gaming vessel. The Majestic Star Casino, LLC owns the membership interests of The Majestic Star Casino II, LLC. The Majestic Star Casino II, LLC owns and operates the dockside Majestic Star Casino II vessel. In addition to owning The Majestic Star Casino II, LLC, The Majestic Star Casino, LLC owns a land-based pavilion containing restaurants, bars, meeting/entertainment space and a 2,000-space parking garage. The Majestic Star Casino II, LLC also owns a 300 room hotel. The land based pavilion, 2,000-space parking garage and 300-room hotel jointly serve the casino guests of both the Majestic Star Casino and Majestic Star Casino II. The Majestic Star Casino and Majestic Star Casino II are located at Buffington Harbor, in Gary, Indiana, approximately 23 miles from downtown Chicago. In August 2018, the Company sold Fitz Tunica Casino & Hotel located in Tunica County, Mississippi, to Foundation Gaming and Entertainment, LLC. For additional information about the Company, visit www.majesticstarcasino.com.
View source version on businesswire.com:https://www.businesswire.com/news/home/20181128005482/en/
CONTACT: Spectacle Entertainment, LLC
John Keeler, General Counsel
KEYWORD: UNITED STATES NORTH AMERICA INDIANA
INDUSTRY KEYWORD: ENTERTAINMENT CASINO/GAMING OTHER ENTERTAINMENT
SOURCE: Spectacle Entertainment, LLC
Copyright Business Wire 2018.
PUB: 11/28/2018 10:00 AM/DISC: 11/28/2018 10:00 AM