This excerpt taken from the ISLE 8-K filed Apr 29, 2009.
SAINT LOUIS, Mo. (April 23, 2009) PR Newswire/First Call/ Isle of Capri Casinos, Inc. (NASDAQ: ISLE) (the Company or Isle) today announced that they have entered into a definitive agreement and completed a transaction with The Rank Group PLC (Rank) to sell the Companys casino asset and take over the existing leased premises at the Ricoh Arena in Coventry, UK.
The Company made the announcement after previously indicating its intention to exit its international operations in order to focus on continuing to improve operating results and increase free cash flow from its domestic property portfolio. The total price for the acquisition by Rank is £650,000, or an approximate current U.S. value of $940,000. In conjunction with the transaction, the Company also executed a buy-out of the Companys obligations under the Coventry casino lease for £7.7 million, or an approximate current U.S. value of $11.2 million, and releases Isle from its parent guaranty under the lease.
Donn Mitchell, senior vice president of UK operations, said, We have taken a significant step forward in our plans to focus on U.S. operations by arranging for a discounted buy-out of the Coventry casino lease and sale of the Coventry casino operations to Rank. We are very pleased with the outcome of this transaction as the deal enables us to strategically exit the UK on good terms from all ongoing financial obligations, including our lease with the Ricoh arena. Additionally, the property will continue to operate under the management of one of the top UK gaming companies, so we do not expect the impact of a closure to be felt by employees or patrons. We built a magnificent facility in Coventry hoping to take advantage of changes in the UK gaming laws that did not occur, and have executed this deal in order to substantially mitigate the negative financial impact we expected to incur should we have continued to operate our facility there moving forward.