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Anchor Gaming Announces Agreement To Acquire 4,596,200 Shares From Chairman Stanley Fulton, Certain Fulton Family Members

25 September 2000

LAS VEGAS, Nevada -- (Press Release) -- Sept. 25, 2000 -- Anchor Gaming (Nasdaq: SLOT) today announced that it has executed a definitive agreement with its Chairman, Stanley Fulton, and members of his family to acquire 4,596,200 shares of stock owned by the Fultons for a purchase price of $66.60 per share. The purchase consideration comprises $240 million in cash and $66 million of promissory notes that Stanley Fulton will receive for a portion of the shares he is selling. Members of the Fulton family will retain ownership of approximately 539,600 shares after the transaction.

As part of the stock purchase transaction with the Fulton family, the Company also announced that it has agreed to sell to Stanley Fulton substantially all of the assets relating to its Sunland Park Racetrack & Casino, located in New Mexico, and its 25% interest in a Massachusetts horse racing facility. Stanley Fulton has agreed to pay $66 million for such assets by canceling the Company's obligations under the promissory notes.

Anchor Gaming expects to fund the cash portion of the stock purchase through an amendment to its existing senior credit facility, led by Bank of America, N.A., and through the issuance of senior subordinated notes.

The Company expects to consummate the stock purchase by the end of October 2000 and to subsequently complete the sale of the racetrack assets by the end of March 2001, subject to regulatory approval.

Upon completion of the stock purchase, Stanley Fulton and his son, Michael Fulton, and his daughter Elizabeth Jones have agreed to resign their positions on Anchor Gaming's Board of Directors. Stanley Fulton founded the predecessor to the Company in 1988 and has served as its Chairman since its inception.

Anchor Gaming also announced that upon completion of the stock purchase, T.J. Matthews, its Chief Executive Officer, will be appointed Chairman of the Board of Directors. In addition, Joe Murphy, its Vice President, will be named Chief Operating Officer-Gaming Operations and will be added to the Board of Directors which will also include the three continuing outside directors.

``Stan's contribution to the growth of Anchor Gaming from a small private company into an industry leader has been immeasurable,'' Matthews said. ``Our spirit and desire to excel have been and will continue to be inspired by the legacy of Stan Fulton's many years as a leader in the growth of the gaming industry and as a benefactor of numerous charitable and civic causes.''

This transaction has been authorized by a Special Committee of disinterested directors. In connection with this transaction, Wasserstein Perella & Co. acted as financial advisor to the Company and Houlihan, Lokey, Howard and Zukin acted as financial advisor to the Special Committee.

Additionally, the Board of Directors has authorized a 2-for-1 stock split. As a result of the split, shareholders of record as of October 31, 2000 will receive one additional share of Anchor Gaming common stock for every one share then owned. The new shares will be issued as soon as practical following the record date. As of September 22, 2000, the Company had approximately 11.7 million shares outstanding, exclusive of treasury shares. After the stock purchase, but without giving effect to the stock split, Anchor Gaming will have approximately 7.1 million shares outstanding.

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