Full House Selling $100M in Notes to Fund Temporary Illinois Casino

Full House Resorts (NASDAQ:FLL) said it’s selling $100 jillion worth of senior secured notes to monetary fund a temporary cassino in Waukegan, Ill.

The notes, which matured in 2028, are beingness sold in a common soldier debt offering and stand for an add-on to a $310 1000000 egress the gaming fellowship brought to market inward Feb 2021. That was followed past an equity sale to conjure additional capital.

The Company intends to expend the sack up proceeds from the Additional Notes offering to develop, outfit and opened The Temporary past American Place, our planned temporary gambling casino inwards Waukegan, Illinois which we think to control while we figure and make our lasting American Place facility,” according to a statement issued by Full House.

Proceeds will also follow used to make up dealings fees from the sales agreement and for general incorporated purposes. Investors inward the pilot debt sales agreement approved the new sales agreement and consented to an increment inwards Full House’s credit entry readiness to $40 gazillion from $15 million.

Waukegan Pivotal to Full House Thesis

In December, the Illinois Gaming Board (IGB) chose Full House as the winning bidder for an integrated resort hotel propose in Waukegan, prompting an heroic rallying in the stock.

The young gaming locus will be known as American Place, and analysts survey it as a stuff addition to the Full House portfolio. Last November, Roth Washington psychoanalyst Edward II Engel said the contrive is worth $3.50 a share to the operator’s inventory price. He calculate the locale is subject of generating earnings before interest, taxes, depreciation and amortisation (EBITDA) and receipts gaming revenue (GGR) comparable to the Grand Vic — a cassino 40 miles away from Chicago.

Should Full House nick EBITDA of $50 billion to $60 billion at American Place, that implies a take on investment of or so 15 percent.

The Temporary by American Place is slated to open up inward the middle of this year, and will feature film 1,000 slot machines and 50 tabularize games. Those gaming assets testament live transferred to the lasting locale when it opens.

Other Full Houses Catalysts

Nevada-based Full House runs a pair of casinos inward its rest home state, and i apiece inward Colorado, Indiana, and Mississippi.

The accompany is also in the physical process of completing the Chamonix Casino Hotel — another throw analysts consider as a possible catalyst for the shares. Citing inflation and supply-chain issues, Full House lately increased its budget for the high-end integrated holiday resort to $250 million.

At the ending of 2020, Full House had $265 million in cash and hard currency equivalents, “including approximately $177 million of restricted cash in dedicated to the construction of its Chamonix Casino Hotel project.”

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