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Hollywood Park Signs Agreement to Sell Two Mississippi Casinos

The assets will be sold to Penn National for $195 million in cash. Hollywood Park bought Casino Magic, which also has a casino in Biloxi, for $340 million in October 1998. The company bought Boomtown, which also has casinos in New Orleans and Reno, Nev., in June 1997.

The Penn National transaction is subject to certain closing conditions, including approval of the Mississippi Gaming Commission, Penn National completing the necessary financing and termination of the Hart-Scott-Rodino waiting period. It's expected to close in the second quarter of 2000.

Penn National will acquire all of the operating assets and related operations of Casino Magic in Bay St. Louis and Boomtown in Biloxi, including the approximately 590 acres of land at Casino Magic Bay St. Louis and the leasehold rights at Boomtown Biloxi.

Hollywood Park will use the proceeds from this sale for general corporate purposes, including the development of its Belterra Resort and Casino scheduled to open in August 2000, the retirement of debt and other growth opportunities.

"This transaction allows Hollywood Park to focus on its Casino Magic Biloxi and Boomtown New Orleans properties while reducing its overall investment in the Gulf Coast area," said R. D. Hubbard, chief executive of Hollywood Park.

Hollywood Park (NYSE: HPK), based in Glendale, Calif., owns and operates eight casinos (including the two that will be sold to Penn National); receives lease income from two card club casinos; and owns and operates a horse racing facility in Arizona.

The company is also constructing the Belterra Resort and Casino, a hotel/casino and golf resort on the Ohio River in Vevay, Indiana (35 miles southwest of Cincinnati, Ohio) and has applied for the fifteenth and final gaming license in Louisiana.

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