Boyd Gaming to acquire IP Casino Resort Spa in Biloxi

17 June 2011

LAS VEGAS, Nevada -- (PRESS RELEASE) -- Boyd Gaming Corporation (NYSE: BYD) today announced that it has entered into a definitive agreement to acquire the IP Casino Resort Spa in Biloxi, Mississippi, from Imperial Palace of Mississippi, LLC, and Key Largo Holdings, LLC, for $278 million in cash. The Company will also contribute $10 million at closing to the Engelstad Family Foundation, which will be distributed over the next five years to local and regional charitable organizations in the Biloxi area.

The transaction will be financed with proceeds from the Company's existing revolving credit facility, and is expected to be accretive to earnings. Following closing, Boyd Gaming plans to invest approximately $44 million in certain capital improvement projects at the property.

Upon satisfactory completion of a 45-day due diligence period, and subject to the terms of the definitive agreement and satisfaction of various closing conditions, including the receipt of federal and Mississippi regulatory approvals, the transaction is expected to close before the end of the year.

"This acquisition is an excellent fit to our existing business and provides further geographic diversification by giving us a presence in a leading regional destination market," said Keith Smith, President and Chief Executive Officer of Boyd Gaming. "In conjunction with our divestiture of Dania Jai-Alai, this is another important step toward achieving our strategic goal of significantly strengthening our balance sheet. We will continue to look for additional acquisitions that are complementary to our current operations, deliver a solid return for our shareholders, and are priced appropriately."

Overlooking the scenic Back Bay of Biloxi, the IP Casino Resort and Spa is one of the premier resorts on the Mississippi Gulf Coast, and a recipient of a AAA Four Diamond Award. Completely remodeled in 2005, the property features nearly 1,100 hotel rooms and suites; a 70,000-square-foot casino with 1,900 slot machines and 62 table games; 73,000 square feet of convention and meeting space; a spa and salon; a 1,400-seat theater offering regular headline entertainment; six lounges and bars; and eight restaurants, including thirty-two, a steak and seafood restaurant, and tien, an upscale Asian restaurant, both AAA Four Diamond-recognized.

We will host a conference call today, June 16, at 12:00 p.m. Eastern to discuss the transaction.

About Boyd Gaming
Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of 16 gaming entertainment properties located in Nevada, New Jersey, Mississippi, Illinois, Indiana, and Louisiana.

Related Links
IP Casino Resort and Spa Details

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