Majestic
Star Acquires Trump Indiana
The Majestic Star Casino, LLC
and its affiliates (the "Company")
announced today that it has completed the acquisition
of Trump Indiana, Inc. ("Trump Indiana").
Effective today, the Company will own and operate
two (2) casino vessels and a hotel at Buffington
Harbor in Gary, IN. Under the terms of a purchase
agreement dated November 3, 2005, the Company
acquired Trump Indiana for a purchase price
of $253 million, subject to certain adjustments.
The
Company is wholly owned by Detroit businessman
Don H. Barden, who is the country's first and
only African American to own a national casino
company. Mr. Barden, Chairman and CEO of the
Company, now owns five (5) casino properties
with annual revenues exceeding $500 million.
The Company is one of only a handful of privately-held
gaming companies in the United States.
Commenting
on the closing of the acquisition, Mr. Barden
said, "This was a complicated deal, but
I am very pleased with the outcome. The transaction
was a natural next step for us. We will immediately
benefit from combining the two operations by
realizing significant efficiencies. Additionally,
we now control over 300 acres of land at Buffington
Harbor, which creates an extraordinary development
opportunity. We are positioned to become the
most competitive gaming operation in the Chicagoland
market."
"Initially,
the Company will focus on a successful integration
of Majestic Star and Majestic Star II (formerly
known as Trump Indiana) and on achieving the
significant cost savings and synergies identified
through our due diligence process. Over time,
we expect to improve our cash flow and strengthen
our balance sheet. With a new source of revenue
and cash flow, we expect to generate significant
free cash flow to be used to reduce debt and
invest in each of our properties."
Mr.
Barden continued, "I would like to take
this opportunity to thank my executive management
team, our investment bankers and attorneys.
This was truly a team effort and we could not
have closed on this deal without everyone's
commitment and tenacity. I want to welcome the
Trump Indiana team members to the Company. We
look forward to a long and mutually rewarding
relationship."
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